Stock Code: 2426

TYNTEK Corporation

Standalone Financial Statements and Independent Auditors' Report

For the Years Ended December 31, 2025 and 2024

Address: No. 15, Kezhong Rd., Zhunan Township, Miaoli County, Hsinchu Science Park

TEL: (037)582997

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

§TABLE OF CONTENTS§

Item		Page	No. of Notes of Financial Statements
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Independent Auditors’ Report	3~6	-
IV.	Parent-only Balance Sheet	7	-
V.	Parent-only Statement of Comprehensive Income	8~9	-
VI.	Parent-only Statement of Changes in Equity	10	-
VII.	Parent-only Statement of Cash Flows	11~12	-
VIII.	Notes to Standalone Financial Statements
	(I) Organization and Operations	13	I
	(II) The Authorization of Financial Statements	13	II
	(III) Application of New and Revised International Financial Reporting Standards	13~16	III
	(IV) Summary of Significant Accounting Policies	16~33	IV
	(V) Critical Accounting Judgements and Key Sources of Estimation and Uncertainty	33	V
	(VI) Summary of Significant Accounting Items	33~73	VI-XXX
	(VII) Related Party Transactions	73~77	XXXI
	(VIII) Pledged Assets	77	XXXII
	(IX) Significant Contingent Liabilities and Unrecognized Commitments	77	XXXIII
	(X) Major Disaster Loss	-	-
	(XI) Material Events After the Balance Sheet Date	-	-
	(XII) Significant assets and liabilities denominated in foreign currencies	77~78	XXXIV
	(XIII) Additional Disclosures
	1. Information about significant transactions	78, 80~81	XXXV
	2. Information on investees	79, 82~83	XXXV
	3. Information on investments in Mainland China	79, 84~85	XXXV
	(XIV) Segments Information	-	-
IX.	Details of Significant Accounting Items	86~106	-

Independent Auditors' Report

To TYNTEK Corporation,

Audit opinion

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

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

Basis for audit opinion

We conducted our audits in accordance with the Regulations Governing the Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards in the Republic of China. Our responsibility under those standards is further described in the section of “Auditor’s Responsibilities for the Audit of the Parent-only Financial Statements”. 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 are convinced that we have acquired enough and appropriate audit evidence to serve as the basis of audit opinion.

Key audit matters

Key audit matters refer to the most vital matters in our audit of the parent company only financial statements of the Company for the year ended December 31, 2025 based on our professional judgment. These matters were addressed in our audit of the parent-only financial

statements as a whole, and in forming our audit opinion. We do not express a separate opinion on these matters.

Key audit matters of the parent company only financial statements of the Company for the year ended December 31, 2025 are stated as follows:

Authenticity of sales revenue

The Company’s 2025 consolidated operating income was NT$2,328,727 thousand. Please refer to Notes 4 and 25 to the consolidated financial statements for the accounting policy and information related to revenue recognition. The operating revenue of the Company primarily arises from the sale of optoelectronic products. As the growth rate of sales revenue for Si products to specific customers is significantly higher than the average growth rate of overall Si products and the amounts involved are material, the authenticity of such sales revenue has been identified as a key audit matter for the current year.

The main audit procedures we performed for said matter are as follows:

Understand and test the effectiveness of the design and the implementation of the main internal control mechanism for the sales.
Select a sample of customer orders and payment receipts related to sales revenue to verify that the sales actually occurred, and check for any discrepancies between the customers to whom sales were made and the customers from whom payments were received.

Responsibilities of the management and the governing body for the parent company only financial statements

The responsibilities of the management are to prepare the parent-only financial statements with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and to maintain necessary internal control associated with the preparation in order to ensure that the financial statements are free from material misstatement arising from fraud or error.

In preparing the parent company only financial statements, the management is responsible for assessing the ability of the Company in continuing as a going concern, disclosing relevant matters, and adopting the going concern basis of accounting unless the management intends to liquidate the Company or cease the operations without other viable alternatives.

The governing body of the Company (including the Audit Committee) is responsible for supervising the financial reporting process.

Auditor’s responsibilities for the audit of the parent company’s only financial statements

Our objectives are to obtain reasonable assurance on whether the parent-only financial statements as a whole are free from material misstatement arising from fraud or error, and to issue

an independent auditors’ report. Reasonable assurance is a high-level assurance but is not a guarantee that an audit conducted in accordance with the auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatement may arise from frauds or errors. If the amounts of misstatements, either separately or in aggregate, could reasonably be expected to influence the economic decisions of the users of the parent-only financial statements, they are considered material.

We have utilized our professional judgment and maintained professional doubt when performing the audit work in accordance with the auditing standards in the Republic of China. We also perform the following tasks:

Identify and assess the risks of material misstatement arising from fraud or error within the parent-only financial statements; design and execute countermeasures in response to said risks, and obtain sufficient and appropriate audit evidence to provide a basis of our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error.
Understand the internal control related to the audit in order to design appropriate audit procedures under the circumstances, while not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and relevant disclosures made by the management.
Conclude on the appropriateness of the management’s adoption of the going concern basis of accounting based on the audit evidence obtained and whether a material uncertainty exists for events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we shall remind users of the parent-only financial statements to pay attention to relevant disclosures in said statements within our audit report. If such disclosures are inadequate, we need to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s 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-only financial statements (including relevant notes), and whether the parent-only financial statements adequately present the relevant transactions and events.
Obtain sufficient and appropriate audit evidence concerning the financial information of entities within the Company, to express an opinion on the parent company’s only financial
5 -

statements. We are responsible for guiding, supervising, and performing the audit and forming an audit opinion on the Company.

The matters communicated between us and the governing body include the planned scope and times of the audit and significant audit findings (including any significant deficiencies in internal control identified during the audit).

We also provided the governing body with a declaration that we have complied with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China regarding independence, and communicated with them all relationships and other matters that may possibly be regarded as detrimental to our independence (including relevant protective measures).

From the matters communicated with the governing body, we determined the key audit matters for the audit of the Company’s parent company only financial statements for the year ended December 31, 2025. We have clearly indicated such matters in the auditors’ report unless legal regulations prohibit the public disclosure of specific matters, or in extremely rare cases, we decided not to communicate over specific items in the auditors’ report, for it could be reasonably anticipated that the negative effects of such disclosure would be greater than the public interest it brings forth.

Deloitte Taiwan
CPA Tsai, Mei-Chen
CPA Chen, Ming-Hui
The Financial Supervisory Commission R.O.C. Approved No.
Jing-Guang-Zheng-Shen-Zi No. 1010028123
Securities and Futures Commission Approval Document No.
Tai-Cai-Zeng-VI No. 0930128050

March 6, 2026

TYNTEK Corporation
Parent-only Balance Sheet
For the Years Ended December 31, 2025 and 2024

Unit: NTD thousand

Code	Asset	December 31, 2025		December 31, 2024		Code	LIABILITIES AND EQUITY	December 31, 2025		December 31, 2024
		Amount	%	Amount	%			Amount	%	Amount	%
	Current assets					Current liabilities
1100	Cash and cash equivalents (Notes 6 and 30)	$ 225,113	5	$ 911,403	19	2100	Short-term borrowings (Notes 17 and 30)	$ 46,164	1	$ 46,609	1
1110	Financial assets at FVTPL - current (Notes 7 and 30)	48	-	15	-	2120	Financial liability at FVTPL - current (Notes 7 and 30)	14,451	-	8,971	-
1136	Financial assets at amortized cost - current (Notes 9, 30, and 32)	661,142	14	6,330	-	2170	Accounts payable (Notes 18 and 30)	287,422	6	343,710	7
1150	Notes receivable, net (Notes 10 and 30)	352	-	363	-	2180	Accounts payable to related parties (Notes 18, 30, and 31)	10,418	-	9,688	-
1170	Net accounts receivable (Notes 10, 23, and 30)	672,812	14	735,157	15	2200	Other payables (Notes 19, 30, and 31)	279,162	6	230,023	5
1180	Accounts receivable - related parties, net (Notes 10, 23, 30 and 31)	70,189	2	48,553	1	2280	Lease liabilities - current (Notes 14 and 30)	3,824	-	2,934	-
		10,386	-	15,663	-	2320	Current portion of long-term borrowings (Notes 17, 30 and 32)	162,232	4	172,615	4
1200	Other receivables (Notes 10 and 30)	2,393	-	2,190	-	2313	Unearned revenue (Notes 19, 27, and 30)	5,395	-	7,492	-
1220	Current tax assets (Note 25)	5,60,848	12	625,875	13	2399	Other current liabilities (Note 19)	9,408	-	9,528	-
130X	Inventories (Note 11)	25,373	1	12,567	-	21XX	Total current liabilities	818,476	17	831,570	17
1479	Other current assets (Note 16)	2,228,656	48	2,358,116	48
	Total current assets					Non-current liabilities
	non-current assets					2540	Long-term borrowings (Notes 17, 30, and 32)	11,585	-	173,309	4
1517	Financial assets at FVTOCI					2550	Provisions - non-current (Note 20)	3,301	-	20,465	-
	Financial assets - non-current (Notes 8 and 30)	48,157	1	59,011	1	2570	Deferred tax liabilities (Note 25)	4,400	-	6,857	-
1550	Investments accounted for using equity method (Note 12)	753,553	16	760,795	15	2580	Lease liabilities - non-current (Notes 14 and 30)	62,977	2	60,872	1
1600	Property, plant and equipment (Notes 13 and 31, 32 and 33)	1,522,950	33	1,643,268	33	2630	Long-term deferred revenue (Notes 27 and 30)	-	-	176	-
1755	Right-of-use assets (Note 14)	63,224	1	60,642	1	2640	Defined benefit liability - non-current (Note 21)	-	-	7,078	-
1780	Intangible assets (Note 15)	14,350	-	13,216	-	2670	Other non-current liabilities (Note 19 and 30)	3,862	-	4,038	-
1840	Deferred tax assets (Note 25)	25,123	1	45,037	1	25XX	Total non-current liabilities	86,125	2	272,795	5
1915	Prepayments for equipment (Note 33)	8,784	-	18,557	1
1975	Defined benefit liability - non-current (Note 21)	4,139	-	-	-	2XXX	Total liabilities	904,601	19	1,104,365	22
1990	Other non-current assets (Note 16 and 30)	5,382	-	5,217	-	Equity (Note 22)
15XX	Total non-current assets	2,445,662	52	2,605,743	52	3110	Ordinary shares	3,006,223	64	3,006,223	61
						3200	Capital reserve	266,729	6	245,685	5
							Retained earnings
						3310	Statutory reserves	292,746	6	286,048	6
						3320	Special reserves	37,523	1	37,523	1
						3350	undistributed earnings	201,981	5	307,481	6
						3300	Total retained earnings	532,250	12	631,052	13
						3400	Other equities	( 35,485 )	( 1 )	( 23,466 )	( 1 )
						3XXX	Total equity	3,769,717	81	3,859,494	78
1XXX	Total assets	$ 4,674,318	100	$ 4,963,859	100		Total liabilities and equity	$ 4,674,318	100	$ 4,963,859	100

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

Chairman: Su,Feng-Cheng

Manager: Lee, Jung-Huan

Accounting Supervisor: Li, Hsiao-Ping

TYNTEK Corporation
Parent-only Statement of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
Unit: NTD thousands; EPS (loss) in NTD

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenue (Notes 23 and 31)	$ 2,328,727	100	$ 2,352,628	100
5000	Operating cost (Notes 11, 24, and 31)	2,076,826	89	2,078,178	88
5900	Gross income from operations	251,901	11	274,450	12
	Operating expenses (Notes 24 and 31)
6100	Selling and marketing expenses	37,650	2	35,921	2
6200	Administrative expenses	147,173	6	186,680	8
6300	Research and development expenses	121,235	5	123,024	5
6450	Expected credit impairment reversal gains	( 375 )	-	-	-
6000	Total operating expenses	305,683	13	345,625	15
6900	Net operating loss	( 53,782 )	( 2 )	( 71,175 )	( 3 )
	Non-operating income and expense
7100	Interest revenue (Note 24 and 31)	11,867	1	12,104	-
7010	Other income (Notes 24 and 31)	7,660	-	9,386	-
7020	Other gains or losses (Note 24)	( 11,933 )	( 1 )	37,429	2
7050	Financial costs (Note 24)	( 8,059 )	-	( 10,177 )	-
7070	Share of profit or loss of subsidiaries and associates accounted for using equity method (Note 12)	( 2,651 )	-	90,957	4
7000	Total non-operating income and expenses	( 3,116 )	-	139,699	6
7900	Net income (loss) before tax	( 56,898 )	( 2 )	68,524	3
7950	Income tax expense (Note 25)	19,338	1	5,635	1
8200	Net income (loss) for this year	( 76,236 )	( 3 )	62,889	2

Chairman: Su,Feng-Cheng
Manager: Lee, Jung-Huan
Accounting Supervisor: Li, Hsiao-Ping

	Other comprehensive income (net amount)
8310	Items that will not be reclassified subsequently to profit or loss:
8311	Remeasurement of defined benefit plans (Note 21)	$ 7,496	-	$ 4,090	-
8316	Unrealized gains (losses) on investments in equity instruments at FVTOCI (Note 22)	( 10,854 )	-	8,313	1
8336	Unrealized gains (losses) on equity instruments of subsidiaries, associates, and joint ventures at FVOCI accounted for using the equity method (Note 22)	( 4,500 )	-	430	-
8349	Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 22)	2,171	-	( 1,663 )	-
8360	Items that may be reclassified subsequently to profit or loss (Note 22):
8380	Share of other comprehensive income of subsidiaries accounted for using the equity method	1,454	-	8,361	-
8399	Income tax relating to items that may be reclassified subsequently to profit or loss	( 290 )	-	( 1,672 )	-
8300	Other comprehensive income of the current year (net amount after tax)	( 4,523 )	-	17,859	1
8500	Total comprehensive income of the current year	( $ 80,759 )	( 3 )	$ 80,748	3
	Earnings (loss) per share (Note 26)
9710	Basic	( $ 0.25 )		$ 0.21
9810	Diluted	( $ 0.25 )		$ 0.21

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

TYNTEK Corporation
Parent-only Statement of Changes in Equity
For the Years Ended December 31, 2025 and 2024
Unit: NTD thousand

Code		Share capital		Capital reserve	Retained earnings			Other items of equity		Total equity
		Shares (Thousands)	Amount		Statutory reserves	Special reserves	undistributed earnings	Exchange Differences in Translating the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
A1	Balance on January 1, 2024	300,621	$ 3,006,223	$ 245,261	$ 286,048	$ 46,381	$ 291,768	($ 23,397)	($ 13,838)	$ 3,838,446
	Earning appropriation and distribution for 2023
B17	Reversed special reserve	-	-	-	-	( 8,858 )	8,858	-	-	-
B5	Cash dividends to shareholders of the Company	-	-	-	-	-	( 60,124 )	-	-	( 60,124 )
D1	2024 net income	-	-	-	-	-	62,889	-	-	62,889
D3	2024 other comprehensive income after tax	-	-	-	-	-	4,090	6,689	7,080	17,859
D5	2024 total comprehensive income	-	-	-	-	-	66,979	6,689	7,080	80,748
C7	Changes in associates and joint ventures accounted for using the equity method	-	-	( 122 )	-	-	-	-	-	( 122 )
M7	Changes in ownership interest of subsidiary	-	-	546	-	-	-	-	-	546
Z1	Balance at December 31, 2024	300,621	3,006,223	245,685	286,048	37,523	307,481	( 16,708 )	( 6,758 )	3,859,494
	Earning appropriation and distribution for 2024
B1	Appropriated as statutory reserves	-	-	-	6,698	-	( 6,698 )	-	-	-
B5	Cash dividends to shareholders of the Company	-	-	-	-	-	( 30,062 )	-	-	( 30,062 )
D1	Net loss of 2025	-	-	-	-	-	( 76,236 )	-	-	( 76,236 )
D3	2025 other comprehensive income after tax	-	-	-	-	-	7,496	1,164	( 13,183 )	( 4,523 )
D5	2025 total comprehensive income	-	-	-	-	-	( 68,740 )	1,164	( 13,183 )	( 80,759 )
C7	Changes in associates and joint ventures accounted for using the equity method	-	-	21,044	-	-	-	-	-	21,044
Z1	Balance on December 31, 2025	300,621	$ 3,006,223	$ 266,729	$ 292,746	$ 37,523	$ 201,981	($ 15,544 )	($ 19,941 )	$ 3,769,717

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

Chairman: Su,Feng-Cheng
Manager: Lee, Jung-Huan
Accounting Supervisor: Li, Hsiao-Ping

TYNTEK Corporation
Parent-only Statement of Cash Flows
For the Years Ended December 31, 2025 and 2024
Unit: NTD thousand

Code		2025	2024
Cash flows from operating activities
A10000	Net income (loss) before tax for this year	($ 56,898)	$ 68,524
A20010	Adjustments for:
A20100	Depreciation expenses	268,471	271,448
A20200	Amortization expenses	5,337	3,468
A20300	Expected credit impairment reversal gains	( 375)	-
A20400	Net loss on financial assets and liabilities at FVTPL	4,008	8,980
A20900	Financial costs	8,059	10,177
A21200	Interest income	( 11,867)	( 12,104)
A21300	Dividend revenue	( 1,530)	( 1,224)
A22400	Share of profit or loss of subsidiaries and associates accounted for using equity method	2,651	( 90,957)
A23800	Loss on inventory valuation falling and obsolescence (gain on recovery)	( 32,967)	4,687
A24100	Unrealized gains on foreign currency exchange	( 11,385)	( 34,283)
A29900	Loss from disposal of subsidiary	-	33
A30000	Changes in operating assets and liabilities
A31130	Note receivable	11	( 29)
A31150	Accounts receivable - related parties	56,535	( 111,049)
A31180	Other receivables (related parties)	5,287	3,442
A31200	Inventories	97,994	( 23,673)
A31230	Pre-payments	( 12,983)	4,559
A31240	Other current assets	12	( 14)
A32130	Note payable	-	( 4)
A32150	Accounts payable - related parties	( 58,847)	12,154
A32180	Other payables	50,538	45,265
A32200	Provisions	( 17,164)	571
A32230	Other current liabilities	( 120)	( 1,278)
A32240	Net defined benefit liability - non-current	( 3,721)	( 3,895)
A33000	Cash from operations	291,046	154,798
A33300	Interest paid	( 8,051)	( 10,161)
A33500	Income tax paid	( 204)	( 1,237)

11 -

AAAA	Net cash inflow from operating activities	282,791	143,400
	Net cash flows of investing activities
B00040	Acquisition of financial assets at amortized cost	($ 771,142)	($ 6,330)
B00050	Disposal of financial assets at amortized cost	116,330	6,239
B00200	Disposal of financial assets at FVTPL	2,145	30,903
B02700	Acquisition of property, plant, and equipment	( 147,770)	( 188,314)
B04500	Acquisition of intangible assets	( 4,287)	( 4,350)
B07100	Decrease (increase) in pre-payments for equipment	9,773	( 1,111)
B07500	Interest received	11,857	12,550
B07600	Dividends received	1,530	1,224
B09900	Collection of dividends from subsidiaries	22,590	21,749
B09900	Other investing activities	-	( 2,507)
BBBB	Net cash outflows from investing activities	( 758,974)	( 129,947)
	Cash flows from financing activities
C00100	Increase in short-term borrowings	234,347	120,988
C00200	Decrease in short-term borrowings	( 237,360)	( 100,657)
C01700	Repayments of long-term borrowings	( 174,380)	( 180,530)
C03000	Decrease in guarantee deposits received	( 176)	-
C04020	Repayment of the principal portion of leases	( 3,561)	( 3,409)
C04500	Cash dividends distributed	( 30,062)	( 60,124)
CCCC	Net cash outflows from financing activities	( 211,192)	( 223,732)
DDDD	Effects of exchange rate changes on the balance of cash held in foreign currencies	1,085	( 4,748)
EEEE	Decrease in cash and cash equivalents	( 686,290)	( 215,027)
E00100	Balance of cash and cash equivalents at the beginning of the year	911,403	1,126,430
E00200	Balance of cash and cash equivalents at the end of the year	$ 225,113	$ 911,403

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

Chairman: Su,Feng-Cheng Manager: Lee, Jung-Huan Accounting Supervisor: Li, Hsiao-Ping

TYNTEK Corporation
Notes to Standalone Financial Statements
For the Years Ended December 31, 2025 and 2024
(In thousand of New Taiwan Dollars, Unless Stated Otherwise)

I. Organization and Operations

TYNTEK Corporation (hereinafter referred to as the “Company”) was incorporated on April 4, 1987 in accordance with the Company Act of R.O.C. The main businesses are research and development, manufacturing, and sales of relevant products, including gallium arsenide, infrared, light-emitting diodes, laser diodes, phototransistors, photodiodes, single crystal and epitaxy, crystal grains, optoelectronic systems, radio transmitters and other electrical devices that can generate radio radiant energy.

The Company’s shares had been listed for trading in Taipei Exchange (TEPx) since November 1998 and were approved by the Securities and Futures Commission, Ministry of Finance (currently known as the Securities and Futures Bureau, Financial Supervisory Commission) to be listed on the Taiwan Stock Exchange for trading instead since September 2000.

The standalone financial statements of the Company are presented in the Company’s functional currency, i.e. the New Taiwan dollar.

II. The Authorization of Financial Statements

The standalone financial statements were approved by the board of directors and authorized for issue on March 4, 2026.

III. Application of New and Revised International Financial Reporting Standards

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

Amendments to IAS 21 “Lack of Exchangeability”

The application of the amendments to IAS 21 “Lack of Convertibility” will not cause a material impact on the Company’s accounting policies.

(II) FSC-approved IFRS Accounting Standards to be applied in 2026

13 -

14 -

New, Revised or Amended Standards and Interpretations	Effective Date Issued 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)	January 1, 2023

As of the publication date of the standalone financial statements, the Company has assessed that other standards and amendments will not have a significant influence on the Company’s financial position and financial performance.

(III) The IFRSs issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the FSC.

New, Revised or Amended Standards and Interpretations	Effective Date Issued 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
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments)	January 1, 2027
Amendments to IAS 21: “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above New, Revised or Amended Standards and Interpretations of IFRSs are effective for annual periods beginning on or after their respective effective dates.

Note 2: The Financial Supervisory Commission announced on September 25, 2025 that enterprises in Taiwan shall adopt IFRS 18 starting from January 1, 2028, and may elect to early adopt IFRS 18 upon its endorsement by the Financial Supervisory Commission.

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

IFRS 18 will replace IAS 1 “Presentation of Financial Statements” and result in the following major changes:

The Company shall assess whether it engages in specific main operating activities, such as investing in particular types of assets and providing financing to customers, in order to classify items of income and expenses in the statement of profit or loss into operating, investing, financing, income tax, and discontinued operations categories.
The income statement shall present operating profit or loss, pre-tax profit or loss before financing, as well as subtotal and total profit and loss.
Provision of guidance to enhance the requirements of aggregation and disaggregation: The Company must identify the assets, liabilities, equity, income, expenses, and cash flows generated from individual transactions or other matters, and classify and aggregate them based on the shared characteristics. Each single item presented in the major financial statements should thereby have at least one similar characteristic. Items with non-similar characteristics should be disaggregated in the major financial statements and notes. The Company only marks such items as "others" when no more informative title can be found.
Increase in the disclosures of the performance measurement defined by the management: When the Company engages in any open communication other than the financial statements, and when the management's view on the Company's overall financial performance on a certain aspect is communicated with the users of the financial statements, the information related to the performance measurement defined by the management should be disclosed in a single note to the financial statements, including the description of such measurement, calculation method, adjustments to any subtotals or totals specified by it and the IFRSs, and the impact of relevant adjustments on income tax and non-controlling interests, etc.

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

When preparing cash flows from operating activities using the indirect method, the Company shall use operating profit or loss as the starting point for reconciliation.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If the Company determines that it has specific main operating activities, it shall consider the classification of dividend income, interest income, and interest expenses presented in the statement of profit or loss in order to determine the classification of dividends received, interest received, and interest paid in the
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statement of cash flows. However, each of the aforementioned cash flows shall be classified into only one category in the statement of cash flows.

In addition to the aforesaid impacts, as of the publication date of the parent company only financial statements, the Company is continuing to assess other impacts of amendments to the standards and interpretations on the Company's financial position and financial performance, and will disclose relevant impacts when the assessment is completed.

IV. Summary of Significant Accounting Policies

(I) Statement of compliance

The standalone financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

The standalone financial statements have been prepared on the historical cost basis except for the financial instruments measured at fair value and the net defined liabilities recognized at the present value of the defined benefit obligation less the fair value of plan assets.

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:

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

When preparing the standalone financial statements, the Company adopted the equity method to account for its investments in subsidiaries and associates. In order to enable the amounts of the profit or loss for the year and other comprehensive income and equity for the year in the standalone financial statements to be the same as the ones attributable to the owners of the Company in its consolidated financial statements, regarding the differences arising from accounting treatments between the parent company only basis and the consolidation basis, adjustments were made to the investments accounted for using the equity method, the share of profit or loss of

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subsidiaries and associates using the equity method, the share of other comprehensive income of subsidiaries and associates using the equity method, as well as relevant equity items, as appropriate, in the standalone financial statements.

(III) Classification of current and non-current assets and liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets realized within 12 months after the balance sheet date; and
Cash or cash equivalents (excluding assets restricted from being exchanged or used to settle a liability for at least 12 months after the balance sheet date).

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities realized within 12 months after the balance sheet date; and
Liabilities for which there is no substantive right on the balance sheet date to defer the repayment deadline to at least 12 months after the balance sheet date.

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

(IV) 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 on the transaction dates.

At each balance sheet date, monetary items denominated in foreign currencies are translated at the rates prevailing on 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 measured at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. The resulting exchange difference is recognized in profit or loss. For items whose changes in fair value are recognized in other comprehensive income, the resulting exchange difference is recognized in other comprehensive income.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the rates of exchange prevailing on the transaction dates and are not retranslated.

When preparing the standalone financial statements, the assets and liabilities of the Company's foreign operations (including subsidiaries, associates, joint ventures, or branches that operate in countries or adopt the functional currencies different from

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the Company) are translated into New Taiwan dollar. Income and expense items are translated at the average exchange rates for the period. The resulting currency exchange differences are recognized in other comprehensive income.

If the Company disposes of the ownership interest of a foreign operation, or disposes of part of the equity of a foreign operation’s subsidiary and loses control, or disposes of a foreign operation’s joint agreement or associate, and the retained equity is a financial asset and is treated based on the accounting policies adopted for financial instruments, then all accumulated exchange differences related to the foreign operation will be reclassified to profit or loss.

If the partial disposal of a subsidiary of a foreign operation does not result in the loss of control, the accumulated exchange differences are included in the calculation of the equity transaction proportionally but are not recognized in profit or loss. In the case of any other partial disposal of foreign operations, the accumulated exchange differences will be reclassified to profit or loss according to the proportion of the disposal.

(V) Inventories

Inventories include merchandise, raw materials, work-in-progress, and finished goods. The value of inventories shall be determined based on the cost and net realizable value (NRV), whichever is lower. The comparison of the cost and NRV is based on individual items except for inventories of the same category. The NRV is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. The cost of inventories is calculated using the weighted average method.

(VI) Investment in subsidiaries

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

A subsidiary is an entity (including structured entity) that is controlled by the Company.

Under the equity method, investments are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of its subsidiaries. In addition, changes in the Company’s other equity interest of its subsidiaries are recognized based on its ownership percentage.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity

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transactions. Any difference between the carrying amount of an investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses of a subsidiary exceeds its equity in said subsidiary (which includes any carrying amount of the investment accounted for by the equity method and long-term equity that, in substance, forms part of the Company’s net investment in said subsidiary), the Company continues recognizing its share of further losses.

The amount of the acquisition cost in excess of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date is classified as goodwill, which is included in the book value of the investment and cannot be amortized. The amount of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date in excess of the amount of the acquisition cost is classified as current income.

When the Company assesses the impairment, it considers the cash-generating unit as a whole in the financial statements and compares its recoverable amount with the carrying amount. If the recoverable amount of an asset increases subsequently, the reversal of the impairment loss shall be recognized in gains, but the carrying amount of the asset after the reversal of the impairment loss shall not exceed the carrying amount of the asset less amortization without impairment loss recognized. The impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When the Company loses control over a subsidiary, it measures its remaining investment in said subsidiary based on the fair value on the day when the control is lost. The fair value of the remaining investment and the difference between any disposal price and the carrying amount of the investment on the day when the control is lost are recognized in profit or loss for the period. In addition, all amounts recognized in other comprehensive income related to said subsidiary are accounted for on the same basis as the one adopted for the Company’s direct disposal of the relevant assets or liabilities.

The unrealized profit or loss on downstream transactions between the Company and its subsidiaries are eliminated in the standalone financial statements. Profit or loss on downstream and lateral transactions between the Company and its subsidiaries is recognized in the standalone financial statements only to the extent that it does not affect the Company’s interests in the subsidiaries.

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(VII) Investments in Associates

An associate is an entity over which the Company has significant influence and is not a subsidiary nor a joint venture.

The Company adopts 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 its share of the equity of associates based on the percentage of ownership.

The amount of the acquisition cost in excess of the Company's share of the net fair value of the identifiable assets and liabilities of an associate that constitutes the business on the acquisition date is classified as goodwill, which is included in the book value of the investment and cannot be amortized. The amount of the Company's share of the net fair value of the identifiable assets and liabilities of an associate that constitutes the business on the acquisition date in excess of the amount of the acquisition cost is classified as profit or loss.

When an associate issues new shares, if the Company does not subscribe according to the ownership percentage, which causes the ownership percentage to change, and, thus, the net equity value of the investment increases or decreases, capital surplus - the changes in the net equity value of associates and joint ventures accounted for using the equity method and the investment accounted for using the equity method are adjusted for the increase or decrease. However, if the new shares is not subscribed to or acquired according to the ownership percentage, which results in a decrease in the ownership interests of the associate, the amount recognized in the other comprehensive income related to the associate is reclassified according to the percentage of the decrease, and the basis of the accounting treatment adopted is the same as the basis that the associate must follow in the case of direct disposal of relevant assets or liabilities. Where the adjustment in the preceding paragraph shall be debited to the capital surplus, and the balance of the capital surplus generated by the investment under the equity method is insufficient, the difference is debited to the retained earnings.

When the Company's share of losses on an associate equals or exceeds its interest in the associate (including any carrying amount of the investment accounted for using the equity method and other long-term interests that, in substance, form part of the

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Company's net investment in the associate), the Company discontinues recognizing its share of further losses. 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 said 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 only to the extent that the recoverable amount of the investment subsequently increases.

The Company ceases to adopt the equity method on the day when its investment ceases to be an associate, and its retained equity in the original associate is measured at fair value. The differences between the fair value, the proceeds from the disposal, and the carrying amount of the investment on the day when the equity method ceases to be adopted are recognized in profit or loss. In addition, all amounts recognized in other comprehensive income related to said associate are accounted for on the same basis as the one adopted for the associate's direct disposal of the relevant 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 will continue to adopt the equity method without remeasuring the retained equity.

Profit or loss on upstream, downstream, and lateral transactions between the Company and its associates is recognized in the standalone financial statements only to the extent that it does not affect the Company's interests in the associates.

(VIII) Property, plant, and equipment

Property, plant and equipment are recognized at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment are depreciated using the straight-line method over their useful lives. Each significant part is depreciated separately. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and depreciation methods, while applying the effect of changes in accounting estimates prospectively.

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When derecognizing property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in loss or profit.

(IX) 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. Intangible assets are amortized using straight-line method over the useful lives. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and amortization methods, while applying the effects of changes in accounting estimates prospectively. Intangible assets with indefinite useful lives are recognized at cost less accumulated impairment loss.

Internally generated—research and development (R&D) expenditure

Research expenditure is recognized in expenses when incurred.

Acquired in a business combination

The intangible assets obtained in a business combination are recognized at the fair value on the acquisition date and recognized separately from goodwill, and subsequently measured in the same method for the intangible assets acquired separately.

Derecognition

When an intangible asset is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(X) Impairment of assets related to property, plant and equipment, right-of-use assets, intangible assets (excluding goodwill), and related assets.

The Company assesses if there are any signs of possible impairment in property, plant, and equipment as well as right-of-use and intangible assets at each balance sheet date. If there is any sign of impairment, an estimate is made of its recoverable amount. If it is not possible to determine 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 smallest group of cash-generating units on a reasonable and consistent basis.

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

The recoverable amount is the fair value less cost of sales or its value in use, whichever is higher. If the recoverable amount of individual asset or the cash-generating unit is lower than its carrying amount, the carrying amount is reduced to the recoverable amount, and the impairment loss is recognized in profit and loss.

The inventory, property, plant and equipment, and intangible assets related to customer contracts are first recognized as impairment in accordance with the inventory impairment regulations and the regulations above. Then, the carrying amount of the assets related to contract cost in excess of the expected amount of consideration received for the provision of the relevant goods or services less the direct relevant costs is recognized as an impairment loss. Subsequently, the carrying amount of the assets related to contract cost is included in the cash-generating unit to which they belong to perform impairment assessment of the cash-generating unit.

When the impairment loss is subsequently reversed, the carrying amount of the asset, the cash-generating unit, or the asset related to contract cost is increased to the revised recoverable amount, provided that the increased carrying amount shall not exceed the carrying amount (less amortization or depreciation) of the asset, cash-generating unit, or the asset related to contract cost which was not recognized as impairment loss in prior years. The reversal of the impairment loss is recognized in profit or loss.

(XI) Financial instruments

Financial assets and financial liabilities shall be recognized in the standalone balance sheet when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities not at fair value through profit or loss are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss is immediately recognized in profit or loss.

Financial assets

Regular trading of financial assets shall be recognized and derecognized in accordance with trade date accounting.

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(1) Measurement types

Financial assets held by the Company are those measured at fair value through profit or loss (FVTPL) and at amortized cost, as well as investments in equity instruments measured at fair value through other comprehensive income (FVTOCI).

A. Financial assets at FVTPL

Financial assets measured at FVTPL include those mandatorily measured at FVTPL and those designated as at FVTPL. Financial assets mandatorily measured at FVTPL include investments in equity instrument that the Company has not designated to measure at FVTOCI, and debt instruments that are not classified as measured at amortized cost or at FVTOCI.

Financial assets measured at FVTPL are measured at fair value, and the gains or losses arising from remeasurement (not including any dividends or interest generated by the financial asset) are recognized in other gains and losses. Please refer to Note 30 for the method of determining the fair value.

B. Financial assets at amortized cost

When the Company’s investments in financial assets meet the following two conditions simultaneously, they are classified as financial assets measured at amortized cost:

a. Held under a certain business model, of which the objective is to collect contractual cash flows by holding the financial assets; and
b. The cash flows on specific dates specified in the contractual terms are solely payments of the principal and interest on the principal amount outstanding.

After initial recognition, such assets (including cash and cash equivalents, notes and accounts receivable measured at amortized cost, other receivables, other financial assets, guarantee deposits paid, and time deposits with the original maturity date of more than 3 months) are measured at the amortized cost of the total carrying amount determined by the effective interest method less any impairment loss, and any foreign currency exchange differences are recognized in profit or loss.

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Except for the following two cases, interest revenue is calculated by multiplying the effective interest rate by the total carrying amount of financial assets:

a. For purchased or originated credit-impaired financial asset, interest revenue is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.

b. For financial asset that is not purchased or originated credit-impaired but subsequently becomes credit impaired, interest income is calculated by multiplying the effective interest rate from the next reporting period after the credit impairment by the amortized cost of the financial asset.

Credit-impaired financial assets refer to the fact that when an issuer or debtor has experienced major financial difficulties or default, the debtor is likely to apply for bankruptcy or other financial restructuring, or the active market for the financial assets disappears due to financial difficulties.

Equivalent cash includes time deposits that are highly liquid, convertible into imprest cash at any time with little risk of value changes within 3 months from the date of acquisition, and is used to meet short-term cash commitments.

C. Investments in equity instruments measured at FVTOCI

The Company may, upon initial recognition, make an irrevocable election to designate as at FVTOCI the investments in equity instruments that are not held for trading and the ones that are not recognized by an acquirer in a business combination or with the contingent consideration.

Investments in an equity instrument measured at FVTOCI are measured at fair value, and any subsequent fair value changes are recognized in other comprehensive income and accumulated in other equity. Upon disposal of investments, cumulative gain or loss is directly transferred to retained earnings and are not reclassified to profit or loss.

Dividends of investments in equity instruments measured at FVTOCI are recognized in profit or loss when the Company's right to

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receive dividends is established unless such dividends clearly represent the recovery of a part of the investment cost.

(2) Impairment of financial assets

The Company assesses the impairment loss of financial assets measured at amortized cost (including accounts receivable) based on the expected credit loss on each balance sheet date.

Accounts receivable are recognized in allowance loss based on the lifetime expected credit losses (ECLs). Other financial assets are first assessed based on whether the credit risk has increased significantly since the initial recognition. If there is no significant increase in the risk, a loss allowance is recognized at an amount equal to 12-month ECLs. If the risks have increased significantly, a loss allowance is recognized at an amount equal to lifetime ECLs.

The ECLs refer to the weighted average credit loss with the risk of default as the weight. The 12-month ECLs represent the ECLs from possible defaults of a financial instrument within 12 months after the reporting date. The lifetime ECLs represent the ECLs from all possible defaults in a financial instrument over the expected life of a financial instrument.

For the purpose of internal credit risk management, the Company, without considering the collateral held, determines that the following situations represent defaults in the financial assets:

A. Internal or external information indicates that it is impossible for the debtor to settle the debt.

B. It is overdue for more than 90 days, unless there is reasonable and corroborative information showing that a default date postponed is more appropriate.

The Company recognizes an impairment loss for all financial assets with a corresponding downward adjustment to their carrying amount through a loss allowance account. However, the loss allowance for investment in debt instruments measured at FVTOCI is recognized in other comprehensive income without a downward adjustment to the carrying amount.

(3) Derecognition of financial assets

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The Company derecognizes a financial asset when the contractual rights to the cash inflow from the financial asset expire or when it transfers the financial assets 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 consideration received is recognized in profit or loss. When the investment in debt instruments measured at FVTOCI is derecognized in its entirety, the difference between its carrying amount and the consideration received plus the sum of any accumulated gains or losses that have been recognized in other comprehensive income is recognized in profit or loss. When derecognizing an investment in equity instrument at FVTOC in its entirety, the cumulative profit or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

Equity instrument

Debt and equity instruments issued by the Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments.

Equity instruments issued by the Company are recognized at the proceeds received, net of the cost of direct issue.

The Company’s own equity instruments reclaimed are recognized and deducted under the equity, and its carrying amount is calculated based on the weighted average of the total amount of shares. The purchase, sale, issuance, or cancellation of the Company’s own equity instruments is not recognized in profit or loss.

Financial liability

(1) Subsequent measurement

Except for the following circumstances, all financial liabilities are measured at amortized cost in the effective interest method:

A. Financial liability at FVTPL

Financial liability at FVTPL, including held for trading.

Financial liabilities held for trading are measured at fair value; and any gain or loss on remeasurement (including any dividends or interest

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paid on the financial liability) is recognized in profit or loss. Please refer to Note 31 for the method of determining the fair value.

(2) Derecognition of financial liabilities

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

Derivatives

The derivative instruments signed by the Company include forward foreign exchange contracts to manage the exchange rate risk.

Derivatives are initially recognized at fair value when the derivative contract is entered, and are subsequently re-measured at fair value on the balance sheet date. The gains or losses generated from the subsequent measurement are directly listed in profit or loss, and are designated as derivative instrument of effective hedging instruments, the timing of their recognition in profit or loss will depend on the nature of the hedging relationship. If the fair value of the derivative instrument is positive, it is listed as a financial asset; if negative, it is listed as a financial liability.

(XII) Provisions

The amount recognized in provision is based on the risk and uncertainty of the obligation, and is the best estimate of the expenditure required to settle the obligation on the balance sheet date. The provisions are measured at the discounted value of the cash flow estimated to settle the obligation.

(XIII) Revenue recognition

After the Company identifies its performance obligations in contracts with customers, it allocates the transaction costs to each obligation in the contracts and recognizes revenue upon completion of performance obligations.

If several contracts are signed with the same customer (or the customer's related party) almost at the same time, as the goods or services promised in these contracts are single performance obligations, the Company deals with the contracts separately.

Sales revenue

Sales revenue comes from the sales of products. As when a product reaches the transaction conditions signed with a customer, the customer already has the right to set the price and the way the product is used while bearing the main responsibility for resale and the risk of obsolescence, at which the Company recognizes such revenue

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and reclassifies it to accounts receivable after fulfilling the remaining obligations. Advance receipts from sales are recognized as contract liabilities before a product reaches the transaction conditions signed with a customer.

In the case of export of raw materials overseas for processing, the control of the ownership of the processed product has not been transferred, so the income is not recognized when said materials are exported.

(XIV) Leasing

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

The Company as lessor

Where almost all the risks and rewards attached to the ownership of an asset are transferred to the lessee in lease terms, such leases are classified as finance leases. All other leases are classified as operating leases.

The Company as lessee

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

A right-of-use asset is initially measured at cost (including the initial measured amount of lease liabilities, the amount of lease payments made to the lessor less lease incentives received prior to the inception of a lease, initial direct costs, and the estimated costs of restoring underlying assets), and subsequently measured at cost less accumulated depreciation and accumulated impairment and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the standalone balance sheets.

A right-of-use asset is depreciated on a straight-line basis over the period from the lease commencement date to the end of its useful life, or to the end of the lease term, whichever is earlier.

Lease liabilities are initially measured at the present value of lease payments. If the interest rate implicit in a lease can be easily determined, the lease payment is discounted at such an interest rate. If the interest rate cannot be easily determined, the lessee's incremental borrowing rate applies.

Subsequently, lease liabilities are measured at the amortized cost using the effective interest rate method, and interest expense is amortized over the lease

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term. If changes in the lease term, the expected payment under the residual value guarantee, the evaluation of the underlying asset purchase options, or the index or rate used to determine the lease payment over the lease term lead to changes in future lease payments, 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 has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as a separate lease, remeasurement of the lease liabilities due to the reduced scope of the lease is to reduce the right-of-use assets, and to recognize the profit or loss of the partial or full termination of the lease; the remeasurement of the lease liabilities due to other modifications is to adjust the right-of-use assets. Lease liabilities are presented on a separate line in the parent company only balance sheets.

(XV) Borrowing costs

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

For specific borrowings, if the investment income earned by making a temporary investment before the capital expenditure that meets the requirements is incurred, it is deducted from the borrowing costs that meet the capitalization conditions.

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

(XVI) Government grants

Government grants 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 in profit or loss on a systematic basis over the periods, in which the Company recognizes in other income the relevant costs for which the grants are intended to compensate. Government grants whose primary condition is that the Company should purchase, construct, or otherwise acquire non-current assets are recognized as deferred income and reclassified to profit or loss during the useful life of said assets on a reasonable and systematic basis.

If government grants are used to compensate expenses or losses incurred, or are given to the Company for the purpose of immediate financial support without relevant

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future costs, they can be recognized in profit or loss in the period, during which it can receive said grants.

For the government loan obtained by the Company with an interest rate lower than that in the market, the difference between the loan amount received and the fair value of the loan calculated at the prevailing market interest rate is recognized as a government grant.

(XVII) Employee benefits

Short-term employee benefits

Relevant liabilities for short-term employee benefits are measured by the non-discounted amount expected to be paid in exchange for employee services.

Post-employment benefits

For pension under the defined contribution plan, the amount of pension contributed is recognized as expenses during employees' service period.

The defined benefit cost under the defined benefit pension plan (including service cost, net interest, and remeasurement) is calculated based on the projected unit credit method. The service cost (including the service cost for the current period) and the net interest of net defined benefit liabilities (assets) are recognized as employee benefit expenses as they occur. The remeasurement (including actuarial gains and losses and the return on plan assets, net of interest) is recognized in other comprehensive income and presented in retained earnings when it occurs, and will not be reclassified to profit or loss.

The net defined benefit liabilities (assets) are the deficit (surplus) of the defined benefit pension plan. The net defined benefit assets may not exceed the present value of any refunds from the plan or reductions in future contributions to the plan.

Other long-term employee benefits

The accounting treatment of other long-term employee benefits is the same as that of post-employment benefits, but the relevant remeasurement is recognized in profit or loss.

(XVIII) Income tax

The income tax expense represents the sum of the tax currently payable and deferred tax.

Tax currently payable
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The Company determines the income (loss) of the current year in accordance with the laws and regulations in each jurisdiction area for income tax filings, and calculates the income tax payable (recoverable) accordingly.

A surtax imposed on the undistributed earnings pursuant to the Income Tax Act of R.O.C. is recognized via a resolution at the annual shareholders’ meeting.

Adjustments to income tax payable from prior years are recognized in the current income tax.

Deferred tax

Deferred income tax is calculated based on the temporary differences between the carrying amount of assets and liabilities and the corresponding tax bases used in the computation of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized when there are likely to be taxable income to deduct temporary differences, loss carryforwards, equipment purchase, research and development, as well as talent training expenditure.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that said temporary difference will not be reversed in the foreseeable future. The deductible temporary differences related to said investments and equity are recognized as deferred income tax only if it is probable that there will be sufficient taxable income to realize the temporary differences, and they are expected to be reversed in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at each balance sheet date, and its carrying amount will be increased as it has become probable that future taxable income will allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates in the period in which the liabilities are expected to be settled or assets realized, based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax

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consequences that would follow from the manner in which the Company expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred income tax

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 recognized in other comprehensive income or directly in equity, respectively.

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

In the application of the Company's accounting policies, the management is required to make judgments, estimations, and assumptions about the relevant information that is not readily accessible from other sources based on historical experience and other relevant factors. Actual results may differ from these estimates.

When developing significant accounting estimates, the Company includes the potential impact of inflation and fluctuation of market interest rates in the consideration for estimation of cash flows, growth rates, discount rates, profitability, and other relevant critical accounting estimates. The management will continue to examine the estimates and basic assumptions.

Key Sources of Estimation and Assumption Uncertainty

Inventory impairment

The NRV of inventories is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. These estimates are based on current market conditions and historical and historical sales experience in similar products. Changes in market conditions may materially affect the results of these estimates.

VI. Cash and equivalents

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 125	$ 119
Check and demand (current) deposit	224,988	301,284
Cash equivalents (bank time deposits with original maturity date of less than 3 months)	-	610,000
Time deposits	$225,113	$911,403

The interest rate ranges of bank demand deposits and time deposits at the balance sheet date are as follows:

Cash in banks	December 31, 2025	December 31, 2024
	0.001%~1.085%	0.001%~1.560%
VII. Financial instruments at FVTPL
	December 31, 2025	December 31, 2024
Financial assets - current
Financial assets designated as at FVTPL
Derivatives (not designated for hedging)
- Forward foreign exchange contracts (Note)	$ 33	$ -
Non-derivative financial assets
- Gold passbook	15	15
	$ 48	$ 15
Financial liability - current
Financial assets designated as at FVTPL
Derivatives (not designated for hedging)
- Forward foreign exchange contracts (Note)	$ 14,451	$ 8,971

Note: The unexpired forward foreign exchange contracts without hedge accounting applied on the balance sheet date are as follows:

December 31, 2025

Sale of forward foreign exchange	Currency	Duration	Contract amount (NTD thousand)
	USD: NTD	August 18, 2025 to January 19, 2026	USD	1,300
	USD: NTD	September 23, 2025 to February 25, 2026	USD	1,157
	USD: NTD	October 22, 2025 to March 19, 2026	USD	1,070
	USD: NTD	December 22, 2025 to May 19, 2026	USD	1,050
	USD: NTD	November 18, 2025 to April 17, 2026	USD	1,000
USD: NTD	December 11, 2025 to February 9, 2026	USD	540

35 -

USD: NTD	November 11, 2025 to January 9, 2026	USD	492
USD: NTD	November 11, 2025 to February 9, 2026	USD	320
USD: NTD	October 13, 2025 to January 9, 2026	USD	290
USD: NTD	December 16, 2025 to March 6, 2026	USD	290
USD: NTD	December 11, 2025 to January 27, 2026	USD	178
USD: NTD	December 16, 2025 to April 2, 2026	USD	170
USD: NTD	November 17, 2025 to March 4, 2026	USD	151
USD: NTD	November 11, 2025 to February 9, 2026	USD	139
USD: NTD	October 13, 2025 to January 27, 2026	USD	114
USD: NTD	December 16, 2025 to May 4, 2026	USD	100
USD: NTD	November 17, 2025 to March 31, 2026	USD	95
USD: NTD	September 15, 2025 to January 30, 2026	USD	94
USD: NTD	October 22, 2025 to February 25, 2026	USD	90
USD: NTD	October 22, 2025 to March 4, 2026	USD	85
USD: NTD	November 11, 2025 to February 13, 2026	USD	80
USD: NTD	December 16, 2025 to March 27, 2026	USD	75
USD: NTD	September 15, 2025 to January 20, 2026	USD	72
USD: NTD	October 22, 2025 to February 4, 2026	USD	65
USD: NTD	December 16, 2025 to March 19, 2026	USD	65
USD: NTD	October 13, 2025 to January 15, 2026	USD	60
USD: NTD	October 13, 2025 to January 30, 2026	USD	55
USD: NTD	September 15, 2025 to January 7, 2026	USD	40
USD: NTD	September 15, 2025 to January 9, 2026	USD	31
USD: NTD	November 17, 2025 to March 27, 2026	USD	24
USD: NTD	September 15, 2025 to January 27, 2026	USD	19

December 31, 2024

	Currency	Duration	Contract amount (NTD thousand)
Sale of forward foreign exchange	USD: NTD	Dec. 24, 2024 to May 20, 2025	USD	1,230
	USD: NTD	Nov. 7, 2024 to Mar. 20, 2025	USD	1,130
	USD: NTD	Nov. 7, 2024 to Apr. 18, 2025	USD	1,120
	USD: NTD	September 11, 2024 to January 24, 2025	USD	1,100
	USD: NTD	Oct. 7, 2024 to Feb. 21, 2025	USD	1,000
	USD: NTD	Oct. 7, 2024 to Jan. 8, 2025	USD	600
	USD: JPY	Oct. 7, 2024 to Feb. 7, 2025	USD	540
	USD: NTD	Nov. 7, 2024 to Feb. 7, 2025	USD	500
	USD: NTD	Dec. 6, 2024 to Feb. 7, 2025	USD	440
	USD: NTD	Nov. 7, 2024 to Jan. 8, 2025	USD	435

37 -

USD: NTD	Dec. 10, 2024 to Mar. 7, 2025	USD	420
USD: JPY	Nov. 7, 2024 to Mar. 5, 2025	USD	418
USD: NTD	Nov. 7, 2024 to Jan. 15, 2025	USD	273
USD: NTD	Dec. 16, 2024 to Apr. 8, 2025	USD	260
USD: NTD	Oct. 7, 2024 to Feb. 7, 2025	USD	250
USD: NTD	September 9, 2024 to January 2, 2025	USD	240
USD: NTD	Nov. 7, 2024 to Mar. 7, 2025	USD	230
USD: NTD	Nov. 7, 2024 to Apr. 1, 2025	USD	205
USD: NTD	Dec. 16, 2024 to Apr. 1, 2025	USD	200
USD: NTD	September 11, 2024 to January 21, 2025	USD	190
USD: NTD	Nov. 7, 2024 to Feb. 18, 2025	USD	180
USD: NTD	Nov. 7, 2024 to Feb. 7, 2025	USD	176
USD: NTD	Dec. 16, 2024 to Apr. 15, 2025	USD	150
USD: NTD	Dec. 10, 2024 to Mar. 25, 2025	USD	140
USD: NTD	Nov. 7, 2024 to Feb. 26, 2025	USD	133
USD: NTD	Dec. 6, 2024 to Jan. 24, 2025	USD	130
USD: NTD	Nov. 7, 2024 to Jan. 7, 2025	USD	102
USD: NTD	Oct. 7, 2024 to Jan. 24, 2025	USD	100
USD: NTD	Dec. 10, 2024 to Mar. 5, 2025	USD	80
USD: NTD	Nov. 7, 2024 to Jan. 2, 2025	USD	72
USD: NTD	Nov. 7, 2024 to Feb. 12, 2025	USD	72
USD: NTD	Dec. 16, 2024 to Apr. 28, 2025	USD	70
USD: NTD	Oct. 7, 2024 to Jan. 15, 2025	USD	60
USD: NTD	Dec. 10, 2024 to Mar. 14, 2025	USD	40
USD: NTD	Dec. 24, 2024 to May 2, 2025	USD	20

The Company's purpose of engaging in forward foreign exchange transactions is to hedge risks arising from foreign currency assets and liabilities due to exchange rate fluctuations. As the forward foreign exchange contracts held by the Company do not meet the conditions for effective hedging, hedge accounting is not applicable.

VIII. Financial assets at FVTOCI

Equity investment instruments	December 31, 2025	December 31, 2024
Non-current
Domestic investment
Stocks listed on TWSE/TPEx and emerging stock markets
Brightek Optoelectronic Co., Ltd.	$ 44,421	$ 50,184
Unlisted stocks
Chipwell Tech Corporation	3,736	8,827
	$ 48,157	$ 59,011

The Company has invested in the common stocks of the above-mentioned companies in accordance with medium and long-term strategic purposes, and expects to make profits through long-term investments. The management of the Company believes that if the short-term fair value fluctuations of these investments are recognized in profit or loss, it is inconsistent with the aforementioned long-term investment plan, so it has elected to designate these investments as at FVTOCI.

IX. Financial assets at amortized cost

	December 31, 2025	December 31, 2024
Current
Time deposits with original maturity date of more than 3 months - not pledged	$650,000	$ -
Time deposits with original maturity date of more than 3 months - pledge	6,428	6,330
Time deposits with original maturity date of less than 3 months - pledge	4,714	-
	$661,142	$ 6,330

As of December 31, 2025, the interest rates on unpledged time deposits with original maturities exceeding three months ranged from $1.360\%$ to $1.720\%$ per annum.

As of December 31, 2025 and 2024, the interest rates on pledged time deposits with original maturities exceeding three months were both 1.690% per annum.

As of December 31, 2025, the interest rates on pledged time deposits with original maturities of within three months ranged from 3.000% to 3.600% per annum.

For information on pledged financial assets measured at amortized cost, please refer to Note 32.

X. Notes receivable, accounts receivable, and other receivables

	December 31, 2025	December 31, 2024
Note receivable
From operations	$ 352	$ 363
Trade receivable
At amortized cost
Gross carrying amount	$673,577	$736,313
Less: Allowance for impairment loss	( 765 )	( 1,156 )
	672,812	735,157
Accounts receivable - related parties	70,189	48,553
	$743,001	$783,710
Other receivables
Business tax refund receivable	$ 8,091	$ 11,784
Others	2,295	3,879
	$ 10,386	$ 15,663

Notes and accounts receivable

The average credit period for customers is net 30 to 180 days after the account day. In addition to the loss allowance for individual customers' actual credit impairment loss, the Company refers to historical experience, considers individual customers' financial status, industries, competitive advantages, and prospects, and divides them into different risk groups and recognizes loss allowances for each group based on their expected loss rates. In addition, a 100% loss allowance is recognized for accounts receivable with an account opened for over 365 days and no other credit guarantee provided.

In order to reduce credit risk, the management of the Company is responsible for the determination of credit limit, credit approval, and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the Company reviews the recoverable amount of the receivables one by one at the balance sheet date to ensure that the appropriate impairment loss is recognized for

uncollectible receivables. With that, the management believes the Company’s credit risk has been significantly reduced.

The Company adopts the simplified approach of IFRS 9 to recognize the loss allowance for accounts receivable based on the lifetime ECLs.

If there is evidence that the counterparty is facing serious financial difficulties and the Company cannot reasonably expect to recover the amount, e.g., the counterparty is in liquidation, the Company directly writes off the relevant accounts receivable, but will continue to try to collect the receivable. The recovered amount is recognized in profit or loss.

The aging analysis of notes and accounts receivable is as follows:

December 31, 2025

	1–120 days after account day	121–180 days after account day	181–365 days after account day	Over 365 days	Total
Expected credit loss ratio	-	-	34.55%	-
Gross carrying amount	$ 603,472	$ 138,432	$ 2,214	$ -	$ 744,118
Loss allowance (lifetime ECLs)	-	-	( 765)	-	( 765)
Amortized cost	$ 603,472	$ 138,432	$ 1,449	$ -	$ 743,353

December 31, 2024

	1–120 days after account day	121–180 days after account day	181–365 days after account day	Over 365 days	Total
Expected credit loss ratio	-	-	14.20%	-
Gross carrying amount	$ 614,235	$ 162,851	$ 8,143	$ -	$ 785,229
Loss allowance (lifetime ECLs)	-	-	( 1,156)	-	( 1,156)
Amortized cost	$ 614,235	$ 162,851	$ 6,987	$ -	$ 784,073

The information on the movements in the loss allowance for notes and accounts receivable is as follows:

	2025	2024
Opening balance	$ 1,156	$ 1,156
Less: Write-off in this year	( 16 )	-
Less: Reversal of impairment losses for the year	( 375 )	-
Closing balance	$ 765	$ 1,156

XI. Inventories

	December 31, 2025	December 31, 2024
Finished goods	$170,866	$221,530
Work in process	219,287	246,729
Raw materials	169,420	157,616
Products	1,275	-
	$560,848	$625,875

The inventory-related costs of sales in 2025 and 2024 were NT$2,076,826 thousand and NT$2,078,178 thousand, respectively.

The cost of sales for 2025 and 2024 included the (gain on reversal of inventory decline) and the loss on inventory decline, which were NT$(32,967) thousand and NT$(4,687) thousand, respectively; the losses on scrap of inventories were NT$48,713 thousand in 2024.

The recovery in the net realizable value of inventories was a result of an increase in the selling prices of inventories in specific markets.

XII. Investments accounted for using equity method

	December 31, 2025	December 31, 2024
Investment in subsidiaries (I)	$574,412	$584,942
Investments in associates (II)	179,141	175,853
	$753,553	$760,795

(I) Investment in subsidiaries

	December 31, 2025	December 31, 2024
TEK Holding Co., Ltd.	$272,035	$258,593
Long Benefit Investment Co., Ltd.	302,377	326,349
	$574,412	$584,942
	Percentage of ownership interests and voting rights
---	---	---
Investee	December 31, 2025	December 31, 2024
TEK Holding Co., Ltd.	100.00%	100.00%
Long Benefit Investment Co., Ltd.	100.00%	100.00%

(II) Investments in Associates

	December 31, 2025	December 31, 2024
Material associates
Hsinjing Holding Co. Ltd. (Hsinjing)	$156,031	$153,759
Keeper Technology	20,984	19,978

42 -

Associates that are not individually material
6,336
183,351
6,326
180,063
Less: Accumulated impairment
( 4,210 )
$179,141
( 4,210 )
$175,853

Material associates

The Company’s percentages of ownership interests and voting rights in associates at the balance sheet date are as follows:

Company name	Percentage of ownership and voting rights		Description
	December 31, 2025	December 31, 2024
Hsinjing (formerly known as Tynsolar)	20.20%	22.79%	Note
Keeper Technology	47.66%	47.66%	—

Note: Hsinjing conducted a cash capital increase in September 2025, issuing 10,000 thousand common shares at a subscription price of NT$18 per share, with total proceeds of NT$180,000 thousand. The Group did not increase its investment in proportion to its shareholding, resulting in a decrease in its ownership interest from 22.79% to 20.20%.

Refer to Table 3 in Note 35. “Information on Investees” for the nature of business, principal places of business, and countries of incorporation of the associates above.

The Company adopts the equity method to measure the above-mentioned associate.

The Company’s share of profit or loss and other comprehensive income of Hsinjing for 2025 and 2024 was recognized based on financial statements audited by other independent auditors.

The Company’s share of profit or loss and other comprehensive income of Keeper Technology for 2025 was recognized based on financial statements audited by other independent auditors.

The information on Level 1 fair value of associate with open market quotes is as follows:

Company name	December 31, 2025	December 31, 2024
Hsinjing	$407,484	$378,124

The following aggregate financial information on the material associate in 2025 and 2024 is prepared on the basis of IFRSs and has already reflected the adjustments made when the equity method is adopted.

Hsinjing

	December 31, 2025	December 31, 2024
Current assets	$ 19,643	$ 15,171
non-current assets	915,253	916,010
Current liabilities	( 44,083 )	( 2,902 )
Non-current liabilities	( 183,594 )	( 297,051 )
Equity	$707,219	$631,228
	2025	2024
Operating income	$ 64,292	$ 36,000
Net loss of the current year	($ 91,686 )	($ 29,694 )
Other comprehensive income	11	( 626 )
Total comprehensive income	($ 91,675 )	($ 30,320 )
Cash flows
Operating activities	$ 15,523	$ 83,418
Investing activities	5	121,867
Financing activities	( 16,451 )	( 209,532 )
Net cash outflow	($ 923 )	($ 4,247 )

Keeper Technology

	December 31, 2025	December 31, 2024
Current assets	$290,894	$252,362
non-current assets	73,170	97,596
Current liabilities	( 169,961 )	( 168,096 )
Non-current liabilities	( 66,254 )	( 60,138 )
Equity	$127,849	$121,724
	2025	2024
Operating income	$290,221	$352,771
Net income of the current year	$ 6,125	$ 10,088
Other comprehensive income	-	-
Total comprehensive income	$ 6,125	$ 10,088

Cash flows

Operating activities $ 10,412 $ 53,692
Investing activities ( 3,487) ( 16,815)
Financing activities 11,607 ( 21,664)
Net cash inflow $ 18,532 $ 15,213

Aggregate information on associates that are not individually material

	2025	2024
The Company’s share of Net income of the continuing operations	$ 10	$ 6

Refer to Table 3 in Note 36 “Information on Investees” for the nature of business, principal places of business, and countries of incorporation of the associates above.

The Company adopts the equity method to measure the above-mentioned associates that are not individually material, and its share of profits and losses and other comprehensive income is recognized based on the affiliated companies’ financial statements that have been audited by other independent auditors.

XIII. Property, plant, and equipment

Self-use

	Self-owned land	Building	Equipment	Leased Improvements	Other Equipment	Unfinished construction and equipment to be checked and accepted	Total
Cost
Balance on January 1, 2025	$ 62,273	$ 1,857,355	$ 2,216,835	$ 20,867	$ 158,919	$ 30,517	$ 4,346,766
Additions	-	32,311	28,609	-	5,277	80,166	146,363
Disposal	-	( 1,652)	( 11,744)	-	( 2,189)	-	( 15,585)
Reclassification	-	23,766	60,990	-	( 2,070)	( 84,932)	( 2,246)
Balance on December 31, 2025	$ 62,273	$ 1,911,780	$ 2,294,690	$ 20,867	$ 159,937	$ 25,751	$ 4,475,298
Accumulated depreciation and impairment
Balance on January 1, 2025	$ -	$ 752,641	$ 1,830,944	$ 20,858	$ 99,055	$ -	$ 2,703,498
Depreciation expenses	-	119,686	128,073	9	16,729	-	264,497
Disposal	-	( 1,652)	( 11,744)	-	( 2,189)	-	( 15,585)
Reclassification	-	-	-	-	( 62)	-	( 62)
Balance on December 31, 2025	$ -	$ 870,675	$ 1,947,273	$ 20,867	$ 113,533	$ -	$ 2,952,348
Net amount on December 31, 2025	$ 62,273	$ 1,041,105	$ 347,417	$ -	$ 46,404	$ 25,751	$ 1,522,950
Cost
Balance on January 1, 2024	$ 62,273	$ 1,746,736	$ 2,106,608	$ 20,867	$ 150,845	$ 123,694	$ 4,211,023
Additions	-	33,764	41,921	-	9,677	90,490	175,852
Disposal	-	-	( 38,417)	-	( 1,692)	-	( 40,109)
Reclassification	-	76,855	106,723	-	89	( 183,667)	-
Balance at December 31, 2024	$ 62,273	$ 1,857,355	$ 2,216,835	$ 20,867	$ 158,919	$ 30,517	$ 4,346,766

Accumulated depreciation and impairment

45 -

Balance on January 1, 2024	$ -	$ 641,317	$ 1,729,537	$ 20,839	$ 84,087	$ -	$ 2,475,780
Depreciation expenses	-	111,324	139,824	19	16,660	-	267,827
Disposal	-	-	(38,417)	-	(1,692)	-	(40,109)
Balance at December 31, 2024	$ -	$ 752,641	$ 1,830,944	$ 20,858	$ 99,055	$ -	$ 2,703,498
Net amount at December 31, 2024	$ 62,273	$ 1,104,714	$ 385,891	$ 9	$ 59,864	$ 30,517	$ 1,643,268

No impairment loss was recognized or reversed in 2025 and 2024.

Depreciation expenses of the property, plant and equipment are calculated on a straight-line basis over their estimated useful lives as shown in the following:

Buildings
Main buildings	15 to 55 years
Electromechanical
power equipment	8 to 10 years
Engineering
systems	1.5 to 15 years
Equipment	1 to 20 years
Leased Improvements	9 to 15 years
Other Equipment	1 to 17 years

Please refer to Note 32 for the amount of property, plant and equipment pledged for loans.

XIV. Lease arrangements

(I) right-of-use asset

	December 31, 2025	December 31, 2024
Right-of-use assets amounts
Land	$ 57,917	$ 56,757
Transport Equipment	3,073	998
Other Equipment	2,234	2,887
	$ 63,224	$ 60,642
	2025	2024
The additions of the right-of-use assets	$ 6,556	$ 3,268
Depreciation charge for right-of-use assets
Land	$ 2,512	$ 2,582
Transport Equipment	809	520
Other Equipment	653	519
	$ 3,974	$ 3,621

Except for the additions and depreciation listed above, the Company did not have significant subleases and impairment during the twelve months ended December 31, 2025 and 2024.

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Lease liabilities amounts
Current	$ 3,824	$ 2,934
Non-current	$ 62,977	$ 60,872

Range of discount rate for lease liabilities is as follows:

	December 31, 2025	December 31, 2024
Land	1.80%~2.01%	1.41%~1.80%
Transport Equipment	1.88%~2.01%	1.88%
Other Equipment	2.01%	2.01%

(III) Material lease-in activities and terms

The Company has leased land and purchased buildings for factories and offices. The lease term is 37 years. Upon the termination of the lease term, the Company does not have preferential rights to acquire the land leased, and it is agreed that the Company shall not lease, sublease, or transfer all or part of the asset leased, or in other methods in disguise, to third parties without the consent of the lessor.

(IV) Other lease information

	2025	2024
Short-term lease expense	$ 340	$ 286
Total cash outflow for leases	($ 5,089)	($ 4,668)

XV. Intangible assets

	Computer software	Other intangible assets	Total
Cost
Balance on January 1, 2025	$ 54,328	$ 1,492	$ 55,820
Acquired separately	4,287	-	4,287
Reclassification	2,246	-	2,246
Balance on December 31, 2025	$ 60,861	$ 1,492	$ 62,353
Accumulated amortization
Balance on January 1, 2025	$ 41,934	$ 670	$ 42,604
Amortization expenses	5,251	86	5,337
Reclassification	62	-	62
Balance on December 31, 2025	$ 47,247	$ 756	$ 48,003
Net amount on December 31, 2025	$ 13,614	$ 736	$ 14,350
Cost
Balance on January 1, 2024	$ 49,978	$ 1,492	$ 51,470

47 -

Acquired separately	4,350	-	4,350
Balance at December 31, 2024	$ 54,328	$ 1,492	$ 55,820
Accumulated amortization
Balance on January 1, 2024	$ 38,551	$ 585	$ 39,136
Amortization expenses	3,383	85	3,468
Balance at December 31, 2024	$ 41,934	$ 670	$ 42,604
Net amount at December 31, 2024	$ 12,394	$ 822	$ 13,216

No impairment loss was recognized or reversed in 2025 and 2024.

Amortization expenses of the property, plant and equipment are calculated on a straight-line basis over their estimated useful lives as shown in the following:

Computer software 1 to 6 years
Other intangible assets 1 to 18 years

XVI. Other assets

	December 31, 2025	December 31, 2024
Current
Pre-payments	$ 23,741	$ 10,062
Input VAT	1,597	2,458
Others	35	47
	$ 25,373	$ 12,567
Non-current
Long-term prepayments	$ 5,089	$ 4,924
Refundable deposits	293	293
	$ 5,382	$ 5,217

XVII. Loan

(I) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured borrowings
Credit borrowings and borrowings for purchase of materials	$ 46,164	$ 46,609

The interest rates of bank borrowings were 1.67%-5.30% and 1.08%-1.47% as of December 31, 2025 and 2024, respectively.

(II) Long-term borrowings

Secured borrowings	December 31, 2025	December 31, 2024

48 -

Loan project for return to Taiwan for investment (1)	$ 82,326	$152,891
Bank loan (2)	91,667	191,667
Unsecured borrowings
Loan project for return to Taiwan for investment (1)	-	2,050
Less: Current portion	( 162,232 )	( 172,615 )
Government grant discount (1)	( 176 )	( 684 )
Long-term borrowings	$ 11,585	$173,309

The loan project for return to Taiwan for investment is based on the program of “Loan for Welcoming Overseas Taiwanese Businesspeople to Return to Taiwan for Investment” launched by the National Development Fund, Executive Yuan. Since March 2020, the Company has successively taken out medium-term bank loans from domestic banks with maturity dates between October 14, 2024 and February 15, 2027, and the Company shall repay the principal and interest in an amortized manner on a monthly basis. The interest rates of bank borrowings were 1.605%-1.625% and 1.325%-1.625% as of December 31, 2025 and 2024, respectively.
The bank loan is a loan of NT$500,000 thousand taken out by the Company on November 8, 2021. The loan term ends on November 8, 2026. The purpose of the loan is to repay the balance of the 2017 syndicated loan. The principal and interest are amortized on a monthly basis, and the bank borrowing interest rate was 2.005% on December 31, 2025 and 2024.

Please refer to Note 32 for details of pledge and security for borrowings.

XVIII. Accounts payable

	December 31, 2025	December 31, 2024
From operations - non-related parties	$287,422	$343,710
From operations - related parties	10,418	9,688
	$297,840	$353,398

XIX. Other liabilities

	December 31, 2025	December 31, 2024
Current
Other payables
Wages, salaries and bonuses payable	$151,543	$115,168
Expenses payable	32,369	31,538
Processing expense payable	54,676	31,341

49 -

Labor and health insurance
premium and pension payable 15,703 15,583
Utility bills payable 10,309 10,743
Plant and equipment payable 9,417 10,824
Employee compensation and
remuneration of directors
payable - 8,935
Others 5,145 5,891
$279,162 $230,023

Unearned revenue
Government grants (Note 27) $ 5,395 $ 7,492

Other current liabilities
Refund liabilities $ 5,661 $ 5,661
Custodial receipts 3,730 3,692
Temporary credit 17 175
$ 9,408 $ 9,528

Non-current
Other liabilities
Deferred credits- unrealized
gross profit from the sale
of long-term investment $ 3,834 $ 3,834
Guarantee deposits received 28 204
$ 3,862 $ 4,038

XX. Provisions

	December 31, 2025	December 31, 2024
Non-current
Employee benefits (Note)	$ 3,301	$ 20,465
		Employee benefits
Balance on January 1, 2025		$ 20,465
Increase for the current year		2,754
Used in the current year		( 1,590 )
Unused balance reversed during the year		( 18,328 )
Balance on December 31, 2025		$ 3,301
Balance on January 1, 2024		$ 19,894
Increase for the current year		2,219
Used in the current year		( 1,648 )
Balance at December 31, 2024		$ 20,465

Note: Provision for employee benefits liability is the estimate of employee long-term
service bonuses (medals).

XXI. Post-employment benefit plans

(I) 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.

(II) Defined benefit plan

The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is the defined benefit plan under the management of the government of R.O.C. 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 an amount, which equals to 2% of each employee' total monthly salary and wage, which is deposited by the Pension Fund Monitoring Committee in the pension account with the Bank of Taiwan in the name of the committee. Before the end of each year, if the balance in the pension account assessed is inadequate to pay for the retirement benefits for employees who meet the retirement requirements in the following year, the Company will contribute an amount to make up for the difference in a lump sum by the end of March of the following year. The pension account is managed by the Bureau of Labor Funds, Ministry of Labor; the Company has no right to influence the investment management strategy.

The amounts included in the standalone balance sheets in respect of the Company's defined benefit plan are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 79,491	$ 88,714
Fair value of plan assets	( 83,630 )	( 81,636 )
Net defined benefit liability (asset)	($ 4,139 )	$ 7,078

The changes in net defined benefit liability (asset):

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liability (asset)
January 1, 2024	$ 89,008	($ 73,945)	$ 15,063
servicing costs
Service cost for the current year	282	-	282
Interest expense (income)	980	( 823 )	157

Recognized in loss (profit)	1,262	( 823 )	439
Remeasurement
Return on plan assets (except for the amount included in the net interest)	-	( 6,786 )	( 6,786 )
Actuarial losses
- Changes in financial assumptions	( 2,277 )	-	( 2,277 )
- Experience adjustments	4,973	-	4,973
Recognized in other comprehensive income	2,696	( 6,786 )	( 4,090 )
Contributions from the employer	-	( 4,334 )	( 4,334 )
Benefits paid	( 4,252 )	4,252	-
Dec. 31, 2024	88,714	( 81,636 )	7,078
servicing costs
Service cost for the current year	404	-	404
Interest expense (income)	1,323	( 1,244 )	79
Recognized in loss (profit)	1,727	( 1,244 )	483
Remeasurement
Return on plan assets (except for the amount included in the net interest)	-	( 5,667 )	( 5,667 )
Actuarial gains (losses)
- Changes in financial assumptions	1,306	-	1,306
- Experience adjustments	( 3,135 )	-	( 3,135 )
Recognized in other comprehensive income	( 1,829 )	( 5,667 )	( 7,496 )
Contributions from the employer	-	( 4,204 )	( 4,204 )
Benefits paid	( 9,121 )	9,121	-
December 31, 2025	$ 79,491	($ 83,630)	($ 4,139)

Due to the pension plans under the Labor Standards Act, the Company is exposed to the following risks:

Investment risk: The Bureau invests labor pension funds in domestic (foreign) equity securities, debt securities, and bank deposits on its own use and through

agencies entrusted. However, the Company’s amount allocated to plan assets is calculated based on the interest rate not lower than the local bank’s interest rate for 2-year time deposits.

Interest risk: A decrease in the interest rate in the government bonds will increase the present value of the defined benefit obligation; however, the return on the debt investment through the plan assets will also increase, and the increases will partially offset the effect of the net defined benefit liability.
Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of the participants in the plan. As such, an increase in the salary of the participants in the plan 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 critical assumptions made on the measurement date are as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.35%	1.61%
Salary adjustment rate	2.50%	2.50%

If each of the critical actuarial assumptions is subject to reasonably possible changes, when all other assumptions remain unchanged, the amounts by which the present value of the defined benefit obligation would increase (decrease) are as follows:

	December 31, 2025	December 31, 2024
Discount rate
0.25% increase	($ 1,240)	($ 1,366)
0.25% decrease	$ 1,272	$ 1,411
Salary adjustment rate
0.5% increase	$ 2,448	$ 2,715
0.5% decrease	($ 2,345)	($ 2,590)

As actuarial assumptions may be correlated, it is unlikely that only a single assumption would occur in isolation of one another, so the sensitivity analysis above may not reflect the actual changes in the present value of the defined benefit obligation.

	December 31, 2025	December 31, 2024
The expected contributions to the plan for the following year	$ 4,220	$ 4,350
The weighted average duration of the defined benefit obligation	8.5 years	8.8 years

53 -

XXII. Equity

(I) Ordinary shares

	December 31, 2025	December 31, 2024
Authorized shares (in thousand)	700,000	700,000
Authorized capital	$7,000,000	$7,000,000
Issued and paid shares (in thousand)	300,621	300,621
Issued capital	$3,006,223	$3,006,223

The ordinary shares issued, with a par value of NT$10 per share, are entitled to one voting right per share and to the right to receive dividends.

(II) Capital reserve

	December 31, 2025	December 31, 2024
May be used to offset a deficit, distributed as cash dividends or transferred to share capital (1)
Shares premium from issuance	$ 6	$ 6
Premium of corporate bond conversion	28,983	28,983
The difference between the equity price and the book value of acquisition or disposal of subsidiary	( 3,064 )	( 3,064 )
May be used to offset a deficit only
Changes in the net equity of subsidiaries and associates accounted for using equity method (2)	105,090	84,046
Treasury stock transactions	37,403	37,403
Expired employees share options	16,410	16,410
Others (Note)	81,901	81,901
	$266,729	$245,685

Note: Reclassified from the difference in the repurchase of the convertible corporate bonds.

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 only once a year).
This type of capital surplus is the effect of equity transactions recognized due to changes in the Company’s equity or the adjustment to the capital surplus of the

affiliate accounted for using the equity method by the Company when the Company has not actually acquired or disposed of the equity of the subsidiary.

The changes in capital surplus for the current period are as follows:

	Changes in the net equity of subsidiaries and associates accounted for using the equity method
Balance on January 1, 2025	$ 84,046
Adjustment to the capital surplus of associates accounted for using the equity method	21,044
Balance on December 31, 2025	$105,090
Balance on January 1, 2024	$ 83,622
Adjustment to the capital surplus of associates accounted for using the equity method	( 122 )
Changes in ownership interests of subsidiaries recognized	546
Balance at December 31, 2024	$ 84,046

(III) Retained earnings and dividends policy

Per the Company's Articles of Incorporation regarding the earnings distribution policy, the Company's earnings distribution or loss compensation shall be proposed by the board of directors after the end of each annual period. In the case of issuance of new shares, it shall be submitted to the shareholders' meeting for a resolution. Any cash distribution of dividends, profits, legal reserves or capital surplus, either in whole or in part, must be resolved in a board meeting with more than two-thirds of the board members present, voted in favor by more than half of the attending directors and reported in the upcoming shareholders' meeting.

According to the earnings distribution policy under the Company's Articles of Incorporation, if there is a surplus as per the annual financial statements, the Company shall pay all taxes in accordance with the law and compensate the cumulative deficit first, and then allocate 10% as a legal reserve in accordance with the law unless it has reached the same amount of the Company's paid-in capital. Where there is any remaining balance, the Company shall allocate amount as or reverse the special reserve according to laws and regulations. If there is still any balance left, together with the cumulative undistributed earnings, the board of directors shall draft an earnings distribution proposal and submit it to the shareholders' meeting to resolve the

distribution of shareholders' dividends. For information on the policy of the employee compensation and remuneration of directors and supervisors as in the Company's Articles of Incorporation, refer to Note 24(7) regarding employee compensation and remuneration of directors.

In addition, according to the Company's Articles of Incorporation, the Company adopts a dividend policy that allows the board of directors to propose dividends after taking into consideration its future capital requirements, long-term financial plans, and shareholders' needs for cash inflow. Profit sharing to shareholders can be paid in cash or shares, provided that the cash portion does not amount to less than 10% of total profit sharing.

Appropriation of earnings to legal reserve shall be made until the reserve equals the Company's paid-in capital. Legal reserves may be used to offset the 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.

The earnings distribution proposals for 2024 and 2023 were approved by the general shareholders' meetings held on May 27, 2025 and May 30, 2024, respectively, and the earnings distribution proposals were as follows:

	2024	2023
Appropriated as statutory reserves	$ 6,698	$ -
Reversed special reserve	$ -	$ 8,858
Cash dividends	$ 30,062	$ 60,124
Cash dividend per share (NTD)	$ 0.1	$ 0.2

The 2025 earnings distribution proposal approved by the Company's board of directors on March 4, 2026 is as follows:

	2025
Cash dividends	$ 30,062
Cash dividend per share (NTD)	$ 0.1

(IV) Special reserves

	2025	2024
Opening balance	$ 37,523	$ 46,381
Reversed special reserve	-	( 8,858 )
Closing balance	$ 37,523	$ 37,523

(V) Other items of equity

Exchange Differences in Translating the Financial Statements of Foreign Operations

	2025	2024
Opening balance	($ 16,708)	($ 23,397)
Incurred in the current year
Share of subsidiaries and associates accounted for using equity method	1,454	8,361
Relevant income taxes	( 290)	( 1,672)
Closing balance	($ 15,544)	($ 16,708)

Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income

	2025	2024
Opening balance	($ 6,758)	($ 13,838)
Incurred in the current year through other comprehensive income	( 10,854)	8,313
Share of subsidiaries accounted for using equity method	( 4,500)	430
Relevant income taxes	2,171	( 1,663)
Other comprehensive income for the current year	( 13,183)	7,080
Closing balance	($ 19,941)	($ 6,758)

XXIII. Revenue

	2025	2024
Sales revenue	$ 2,328,727	$ 2,352,628
Disaggregation of revenue from product contract revenue
	2025	2024
Disaggregation of sales revenue by main products
Si component	$ 1,645,361	$ 1,627,405
Compound semiconductor components	673,723	720,497
Others	9,643	4,726
	$ 2,328,727	$ 2,352,628

(I) Contract balance

December 31, 2025	December 31, 2024	January 1, 2024

Accounts receivable (Note 10)
$ 743,001
$ 783,710
$ 647,499

XXIV. Net income (loss) of the continuing operations for the period

Net loss for the year is from the following items:

(I) Interest income

	2025	2024
Cash in banks	$ 11,750	$ 11,852
Financial assets at amortized cost	117	233
imputed interest on financing	-	19
	$ 11,867	$ 12,104

(II) Other income

	2025	2024
Subsidy income	$ 2,273	$ 2,845
Dividend revenue	1,530	1,224
Rent income	549	549
Others	3,308	4,768
	$ 7,660	$ 9,386

(III) Other gains or losses

	2025	2024
Net foreign exchange gains (losses)	($ 7,012)	$ 48,559
Net losses on financial assets at FVTPL	( 4,008 )	( 8,980 )
Loss from disposal of subsidiary	-	( 33 )
Miscellaneous expenditure	( 913 )	( 2,117 )
	($ 11,933 )	$ 37,429

(IV) Financial costs

	2025	2024
Interest on bank loans	$ 6,871	$ 9,204
Interest on lease liabilities	1,188	973
	$ 8,059	$ 10,177

(V) Depreciation and amortization

	2025	2024
An analysis of depreciation by function
Operating costs	$236,320	$238,874
Operating expenses	32,151	32,574

	$268,471	$271,448
An analysis of amortization by function
Operating costs	$ 198	$ 5
Operating expenses	5,139	3,463
	$ 5,337	$ 3,468
(VI) Employee benefits expense
	2025	2024
Short-term employee benefits	$608,835	$612,628
Long-term employee benefits	2,755	2,219
Post-employment benefits
Defined contribution plans	20,396	19,326
Defined benefit plans (Note 21)	483	439
Total employee benefits expense	$632,469	$634,612
An analysis by function
Operating costs	$457,381	$426,225
Operating expenses	175,088	208,387
	$632,469	$634,612

(VII) Employees' compensation and remuneration of directors

The Articles of Incorporation of the Company stipulate that the employees' compensation and remuneration of directors shall be appropriated at the rates from $5\% - 15\%$ and no higher than $5\%$ , respectively, of the net income before taxes and net of employees' compensation and remuneration of directors. According to the amendment to the Securities and Exchange Act in August 2024, the Company has amended the Articles of Incorporation during the 2025 shareholders' meeting, specifying that no less than $20\%$ of the amount of employee remuneration of the current year shall be appropriated as the remuneration of entry-level employees. There was net loss before tax for the years ended December 31, 2025; therefore, no estimate of the remuneration of employees (including the remuneration of entry-level employees) and remuneration of directors was made. The estimated employees' remuneration and directors' remuneration for 2024 are as follows:

Ratio

	2024
Employee compensation	10%
Directors’ remuneration	1.5%

Amount

	2024
	Cash	Stocks
Employee compensation	$ 7,770	$ -
Directors’ remuneration	$ 1,165	$ -

If there is a change in the proposed amounts after the annual standalone financial statements were authorized for issue, the differences are recorded as a change in accounting estimate and will be reflected in the following year.

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

(VIII) Foreign exchange gains (losses)

	2025	2024
Total foreign exchange gains	$191,402	$115,667
Total foreign exchange losses	( 198,414 )	( 67,108 )
Net gains (losses)	($ 7,012 )	$ 48,559

XXV. Income tax

(I) Income tax recognized in profit or loss

Major components of tax expense were as follows:

	2025	2024
Deferred tax
Incurred in the current year	$ 19,338	$ 5,635
Income tax expense recognized in profit or loss	$ 19,338	$ 5,635

The adjustment to accounting income and income tax expenses is as follows:

	2025	2024
Net income (loss) before tax for this year	($ 56,899 )	$ 68,524
Income tax expense calculated based on statutory tax rate for net loss (income) before tax	($ 11,380 )	$ 13,705
Permanent difference	( 53,161 )	( 17,475 )
Loss credit and temporary difference	83,879	9,405
Income tax expense recognized in profit or loss	$ 19,338	$ 5,635

(II) Income tax recognized in other comprehensive income

	2025	2024
Deferred tax
Incurred in the current year

59 -

Translation of foreign operations
$ 290
$ 1,672
Unrealized gain (loss) on financial assets at FVTOC
( 2,171)
1,663
Income tax (benefit) expense recognized in other comprehensive income
($ 1,881)
$ 3,335

(III) Current tax assets

	December 31, 2025	December 31, 2024
Current tax assets
Tax refund receivable	$ 2,393	$ 2,190

(IV) Deferred tax assets and liabilities

The changes in the deferred tax assets and liabilities are as follows:

2025

Deferred tax assets	Opening balance	Recognized in profit or loss	Recognized in other comprehensive income	Closing balance
Temporary difference
Impairment losses, including loss allowance	$ 28,011	($ 6,673)	$ -	$ 21,338
Financial assets at FVTOCI	( 7,038)	-	2,171	( 4,867)
Provisions	4,093	( 3,446)	-	647
Refund liabilities	1,132	-	-	1,132
Defined benefit pension plan	( 2,355)	( 744)	-	( 3,099)
Property, plant, and equipment	1,337	( 84)	-	1,253
Associate	276	( 276)	-	-
Exchange differences on translating the financial statements of foreign operations	4,175	-	( 290)	3,885
Investment/R&D credit	15,406	( 10,572)	-	4,834
	$ 45,037	($ 21,795)	$ 1,881	$ 25,123
Deferred tax liabilities
Unrealized foreign exchange gains	$ 6,857	($ 4,578)	$ -	$ 2,279
Associate	-	2,121	-	2,121
	$ 6,857	($ 2,457)	$ -	$ 4,400

2024

Deferred tax assets	Opening balance	Recognized in profit or loss	Recognized in other comprehensive income	Closing balance
Temporary difference
Impairment losses, including loss allowance	$ 27,072	$ 939	$ -	$ 28,011
Financial assets at FVTOCI	( 5,375 )	-	( 1,663 )	( 7,038 )
Provisions	3,979	114	-	4,093
Refund liabilities	1,132	-	-	1,132
Defined benefit pension plan	( 1,576 )	( 779 )	-	( 2,355 )
Property, plant, and equipment	1,354	( 17 )	-	1,337
Associate	1,945	( 1,669 )	-	276
Exchange differences on translating the financial statements of foreign operations	5,847	-	( 1,672 )	4,175
Unrealized exchange losses	1,061	( 1,061 )	-	-
Investment/R&D credit	12,236	3,170	-	15,406
	$ 47,675	$ 697	( $ 3,335 )	$ 45,037
Deferred tax liabilities
Unrealized foreign exchange gains	$ -	$ 6,857	$ -	$ 6,857
Associate	525	( 525 )	-	-
	$ 525	$ 6,332	$ -	$ 6,857

(V) Deductible temporary difference of deferred tax assets not recognized in the parent company only balance sheet

	December 31, 2025	December 31, 2024
Deductible temporary difference
Impairment losses, including loss allowance	$ 15,746	$ 15,746

(VI) Income tax assessments

The Company's profit-seeking enterprise income tax returns up to 2023 had been examined and approved by the tax authorities.

XXVI. Earnings (loss) per share

Unit: NT$ Per Share

61 -

	2025	2024
Basic earnings (loss) per share	($ 0.25)	$ 0.21
Diluted earnings (loss) per share	($ 0.25)	$ 0.21

The net (loss) income and weighted average number of ordinary shares outstanding in calculating earnings (loss) per share were as follows:

Net income (loss) for this year

	2025	2024
Net income (loss) used to calculate basic and diluted earnings (loss) per share for the year	($ 76,236)	$ 62,889

Shares Unit: Thousand Shares

	2025	2024
Weighted average number of ordinary shares in computation of basic earnings (losses) per share	300,621	300,621
Effect of potentially diluted ordinary shares:
Employee compensation	-	339
Weighted average number of ordinary shares in computation of diluted earnings (losses) per share	300,621	300,960

If the Company can settle the compensation to employees in cash or shares, the Company assumes the entire amount of the compensation would 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 if the effect is dilutive. Such a dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

XXVII. Government grants

As of December 31, 2025, the Company has obtained a government loan of NT$282,370 thousand with preferential interest rates under the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan for capital expenditure and purchase of equipment. The loan will be repaid in installments over a period of five to seven years. The fair value of the loan is estimated to be NT$278,233 thousand based on the market interest rate of 0.87% to 2.00% when the loan was taken

out. The difference between the amount obtained and the fair value of the loan is in the amount of NT$4,137 thousand as a government low-interest loan grant and recognized as unearned revenue. The unearned revenue is reclassified to profit or loss over the useful life of the relevant assets. Other income recognized by the Company for 2025 and 2024 is NT$507 thousand and NT$1,012 thousand, respectively, and the loan interest expenses recognized are NT$2,042 thousand and NT$3,085 thousand, respectively.

If the Company fails to meet the requirements of the project loan regulations during the loan term and the National Development Fund has to stop the loan, and when the processing fee should be charged, the Company shall pay at the initial agreed interest rate plus the annual interest rate.

The Company received a total of NT$12,982 thousand from the government under the "Energy Conservation Performance Guarantee Project Demonstration and Promotion Subsidy Program" organized by the Ministry of Economic Affairs. The amount was recognized as deferred income and transferred to profit or loss within the useful life of the related asset. The amounts of the subsidies recognized as income in both 2025 and 2024 were NT$1,765 thousand.

XXVIII. Disposal of investment in subsidiary—loss of control

In February 2024, the Company failed to subscribe for the subsidiary - Keeper Technology Co., Ltd. in proportion to its shareholding, resulting in a decrease in shareholding from 19.02% to 16.41% and a loss of control over the subsidiary. Please refer to Note 30 to the Company's 2025 consolidated financial statements for a description of its disposal of Keeper Technology Co., Ltd..

XXIX. Capital risk management

In accordance with the overall business environment and the Company's future development, the Company's capital structure is regularly reviewed by the main management personnel in consideration of external competition, changes in the environment, and other factors. The review includes consideration for various types of capital costs and relevant risks to determine an appropriate capital structure of the Company. The purpose is to satisfy the Company's requirements for working capital, research and development expenses, and dividend expenditures in the future, while ensuring that the Company can continue to operate, give back to shareholders, and take into account the interests of other stakeholders, and maintaining the best capital structure to enhance shareholders' value on a long term.

63 -

The capital structure of the Company consists of net debt (borrowings less cash and cash equivalents) and equity of the Company (comprising share capital, capital surplus, retained earnings, and other equity items).

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

The key management personnel of the Company reviews the capital structure annually. As part of this review, the key management personnel considers the cost of capital and the risks associated with each class of capital. Under the suggestions of the key management personnel, the Company may pay dividends, issue new shares, buy back shares, and issue new debts or repay old debts to balance the overall capital structure.

XXX. Financial instruments

(I) Fair value—financial instruments not at fair value

The carrying amount of the Company’s financial assets and liabilities and lease payables measured at amortized cost was close to their fair value in the financial statements at the end of the financial reporting period.

(II) Fair value—financial instruments at fair value on a recurring basis

1. Degree of fair value measurements

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivatives
Forward foreign exchange contracts	$ -	$ 33	$ -	$ 33
Gold passbook	15	-	-	15
Total	$ 48	$ 33	$ -	$ 48
Financial assets at FVTOCI
Investment in equity instruments
Domestic stocks listed on TWSE/TPEx and emerging stock markets	$ 44,421	$ -	$ -	$ 44,421
Domestic unlisted stocks	-	-	3,736	3,736
Total	$ 44,421	$ -	$ 3,736	$ 48,157
Financial liability at FVTPL
Derivatives
Forward foreign exchange contracts	$ -	$ 14,451	$ -	$ 14,451

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Gold passbook	$ 15	$ -	$ -	$ 15

65 -

Financial assets at FVTOCI
Investment in equity instruments
Domestic stocks listed on TWSE/TPEx and emerging stock markets	$ 50,184	$ -	$ -	$ 50,184
Domestic unlisted stocks	-	-	8,827	8,827
Total	$ 50,184	$ -	$ 8,827	$ 59,011
Financial liability at FVTPL
Derivatives Forward foreign exchange contracts	$ -	$ 8,971	$ -	$ 8,971

There were no transfers between Level 1 and Level 2 fair value in 2025 and 2024.

Valuation techniques and inputs applied for Level 2 fair value measurement

Class of financial instruments	Valuation technique and inputs
Derivatives - forward foreign exchange contracts	Discounted cash flow method: Future cash flows are estimated based on the observable forward exchange rates at the end of the period and the exchange rates and interest rates specified in the contract and discounted at a discount rate that can indicate each counterparty’ credit risk.

Reconciliation of Level 3 fair value measurements of financial instruments 2025

Financial assets	Financial assets at FVTPL	Financial assets at FVTOCI
	Equity instrument	Equity instrument
Opening balance	$ -	$ 8,827
Recognized in profit or loss (other gains or losses)	2,145	-
Recognized in other comprehensive income (unrealized gain (loss) on financial assets at FVTOC)	-	( 5,091 )
Disposal	( 2,145 )	-
Closing balance	$ -	$ 3,736

2024

	Financial assets at FVTPL	Financial assets at FVTOCI
Financial assets	Equity instrument	Equity instrument
Opening and closing balance	$ -	$ 8,827

Valuation techniques and inputs applied for Level 3 fair value measurement

Investments in domestic and foreign unlisted equity are estimated by the market approach based on the transaction price of comparable targets, and the difference between the evaluation target and the comparable target is considered to estimate the value of the target evaluated using an appropriate multiplier.

	December 31, 2025	December 31, 2024
Price-book ratio	2.50	7.22
Liquidity Discounts	30%	30%

(III) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets as at FVTPL
Financial assets designated as at FVTPL	$ 48	$ 15
Financial assets at amortized cost (Note 1)	1,640,287	1,717,762
Financial assets at FVTOCI
Investment in equity instruments	48,157	59,011
Financial liability
Financial assets as at FVTPL
Financial assets designated as at FVTPL	14,451	8,971
Amortized cost (Note 2)	802,406	983,826

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable, accounts receivable (including from related parties), other receivables (including from related parties), and refundable deposits.

Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, accounts payable (including to related parties), other payables (including to related parties), current portion of long-

term borrowings, unearned revenue, long-term borrowings, long-term deferred revenue, and guarantee deposits received.

(IV) Financial risk management objective and policies

The Company’s main financial instruments include equity investment, accounts receivable, accounts payable, borrowings and lease liabilities. The Company’s financial management department provides services to various business units, coordinates the operations in the domestic and international financial markets, and supervises and manages the financial risks related to the Company’s operations by analyzing internal risk reports based on the degree and breadth of risks. These risks include market risk (including currency risk, interest rate risk and other price risks), credit risk and liquidity risk.

The Company uses derivative financial instruments to avoid risk exposure to mitigate the impact of these risks. The use of derivative financial instruments is regulated by the policies adopted by the Company’s board of directors, which are written principles for exchange rate risk, interest rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments, and the investment of remaining working capital. Compliance with policies and exposure limits is being reviewed by the internal auditors continuously. The Company does not trade financial instruments (including derivative financial instruments) for speculative purposes.

Market risk

The main financial risks for the Company’s operating activities are the risk of changes in foreign currency exchange rates (see (1) below) and the risk of changes in interest rates (see (2) below). The Company engages in various derivative financial instruments to manage foreign currency exchange rate risk, interest rate risk, and other price risks.

The Company’s exposure to the market risk of financial instruments and its management and measurement methods for the risk exposure have remained unchanged.

(1) Exchange rate risk

The Company is engaged in sale and purchase transactions denominated in foreign currencies, which has caused the Company to be exposed to the risk of exchange rate fluctuations. Approximately 90.75% of the Company’s sales are not denominated in the functional currency,

67 -

and approximately 67.19% of the cost is not denominated in the functional currency. The Company's management of the exposure to the exchange rate risk is to use foreign currency options contracts to manage risks within the scope permitted by the policy.

For the carrying amount of monetary assets and monetary liabilities denominated in non-functional currencies at the balance sheet date, please refer to Note 34.

Sensitivity analysis

The Company was mainly affected by the fluctuations in the exchange rates of USD, JPY, and CNY.

The following table details the Company's sensitivity analysis when the New Taiwan dollar (functional currency) increases and decreases by 1% against each relevant foreign currency. The sensitivity to a 1% change in New Taiwan dollars is used when reporting foreign currency risk internally to key management personnel and also represents the management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis only included monetary items in foreign currencies in circulation, and the year-end translation was adjusted with a 1% change in the exchange rates. The positive numbers in the table below indicate the amount by which the net income before tax will be reduced when the New Taiwan dollar appreciates by 1% against the relevant currencies; when the New Taiwan dollar depreciates by 1% against the relevant foreign currencies, the net income before tax will be the negative number of the same amount.

	Impact of USD		Impact of JPY		Impact of CNY
	2025	2024	2025	2024	2025	2024
Gains (losses)	($ 3,693)(i)	($ 5,266)(i)	$ 343(ii)	$ 449(ii)	($ 2,568)(iii)	($ 2,687)(iii)

(i) Mainly derived from the Company's USD-denominated receivables and payables still outstanding at the balance sheet date, against which a cash flow hedge has not been conducted.

(ii) Mainly derived from the Company's JPY-denominated borrowings and payables still outstanding at the balance sheet date, against which a cash flow hedge has not been conducted.

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(iii) Mainly derived from the Company's CNY-denominated receivables and payables still outstanding at the balance sheet date, against which a cash flow hedge has not been conducted.

Sales denominated in USD are seasonal, so the exposure to the foreign currency risk at the balance sheet date cannot reflect the risk exposure throughout the year.

(2) Interest rate risk

Because individual entities within the Company borrow funds at fixed and floating interest rates at the same time, the interest rate risk risks arise. The Company manages the interest rate risk by maintaining an appropriate combination of fixed and floating interest rates.

The carrying amounts of the Company's financial assets and financial liabilities with exposure to the interest rate risk at the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Fair value interest rate risk
-Financial assets	$654,714	$610,000
-Financial liabilities	46,164	46,609
Cash flow interest rate risk
-Financial assets	230,972	307,170
-Financial liabilities	173,817	345,924

Sensitivity analysis

The sensitivity analysis below is determined based on the exposure to the interest rate risk of derivatives and non-derivatives at the balance sheet date. For liabilities with floating interest rates, the analysis method is based on the assumption that the amount of liabilities outstanding at the balance sheet date is under outstanding throughout the reporting period. The sensitivity to a 1% change in interest rate is used when reporting the interest rate risk internally to key management personnel and also represents the management's assessment of the reasonably possible change in interest rates.

If the interest rate increased/decreased by 1% and all other variables remain unchanged, the Company's net income before tax for 2025 and 2024 would have increased/decreased by NT$572 thousand and NT$388

69 -

thousand, respectively, mainly due to the Company’s exposure to interest rate risk from net assets at floating interest rates.

(3) Other price risk

The Company’s exposure to the equity price risk is due to the investment in the listed equity securities. The management of the Company manages the risk by holding investment portfolios with different risk factors. The Company’s equity price risk is mainly concentrated on Taiwan Stock Exchange’s equity instruments in specific industries.

Sensitivity analysis

The sensitivity analysis below is based on the equity price risk exposure at the balance sheet date.

Other comprehensive income before tax for 2025 and 2024 would have increased/decreased by NT$444 thousand and NT$502 thousand due to changes in the fair value of financial assets at FVTOCI.

The Company’s sensitivity to price risks decreased for the current year, mainly due to the decrease in the positions exposed to other price risks.

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 balance sheet date, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to failure of counterparties to perform an obligation and financial guarantees provided by the Company could arise from:

(1) The carrying amount of the financial assets recognized in the standalone balance sheet.

(2) The amount of contingent liabilities arising from the financial guarantee provided by the Company.

The policy adopted by the Company is to conduct transactions only with reputable counterparties, and obtain sufficient guarantees under necessary circumstances to reduce the risk of financial losses due to defaults. The Company only conducts transactions with companies whose ratings are equal to or higher than the investment grade. Such information is provided by independent rating agencies; if such information is not available, the Company will refer to other

70 -

publicly available financial information and mutual transaction records to rate its major customers. The Company continuously monitors credit risk and the credit rating of its counterparties, and distributes the total transaction amount to customers with qualified credit ratings, and controls the exposure to credit risk through the counterparty credit limits that are reviewed and approved by the financial management department every year.

In order to mitigate the credit risk, the management of the Company assigns a dedicated team responsible for the determination of credit limits, credit approval, and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the Company reviews the recoverable amount of the receivables one by one at the balance sheet date to ensure that the appropriate impairment loss is recognized for uncollectible receivables. With that, the management believes the Company's credit risk has been significantly reduced.

The credit risk on liquid funds and derivatives is not high because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

The Company's customer base is large and unrelated, so the concentration of credit risk is not high.

3. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the impact of cash flow fluctuations. The management of the Company monitors the use of the bank financing facilities and ensures compliance with the terms of the borrowing terms.

Bank borrowings were an important source of liquidity for the Company. As of December 31, 2025 and 2024, for the Company's unutilized credit facilities, please refer to (2) below for description of financing facilities.

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

The remaining contractual maturity analysis of non-derivative financial liabilities was based on the earliest date at which the Company might be required to repay and was compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank borrowings with a repayment on demand clause were included in the earliest time period, regardless of the

71 -

probability of exercise of the right by banks. The maturity analysis of other non-derivative financial liabilities was compiled in accordance with the agreed repayment date.

December 31, 2025

	Less than 1 year	Over 1 year
Non-derivative financial liabilities
Non-interest-bearing liabilities
Accounts payable	$297,840	$ -
Other payables (Note)	105,942	-
Floating interest rate instruments	162,056	11,761
Fixed interest rate instruments	46,164	-
lease liabilities	5,006	79,848
	$617,008	$ 91,609

Further information on the analysis of lease liabilities maturity dates is as follows:

	Less than One Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	Over 20 Years
Lease liabilities	$ 5,006	$ 16,288	$ 12,262	$ 12,262	$ 12,262	$ 26,774

December 31, 2024

	Less than 1 year	Over 1 year
Non-derivative financial liabilities
Non-interest-bearing liabilities
Note payable and accounts payable	$353,398	$ -
Other payables (Note)	82,105	-
Floating interest rate instruments	171,931	173,993
Fixed interest rate instruments	46,609	-
lease liabilities	4,059	78,658
	$658,102	$252,651

Further information on the analysis of lease liabilities maturity dates is as follows:

Note: The other payables mentioned above do not include salaries and bonuses payable, pensions payable, insurance premiums payable, employees' compensation payable, and directors' remuneration payable.

(2) Financing facilities

	December 31, 2025	December 31, 2024
Unsecured bank borrowings facility (review every year)
- Amount used	$ 46,164	$ 48,659
- Amount unused	760,986	845,266
	$ 807,150	$ 893,925
Secured bank borrowings facility
- Amount used	$ 173,993	$ 344,557
- Amount unused	726,007	705,443
	$ 900,000	$ 1,050,000

XXXI. Related Party Transactions

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

(I) Related party name and category

Related Party Name	Related Party Category
Long Benefit Investment Co., Ltd. (Long Benefit)	Subsidiary
TEK Holding Co., Ltd. (TEK)	Subsidiary
Yuanmao Opto-electronic Technology (Wuhan) Co., Ltd. (Yuanmao)	Sub-subsidiary
Associate
Coretech Optical Co., Ltd. (Coretech)	Associate by investment using the equity method
Hsinjing Holding Co. Ltd. (Hsinjing)	Associate by investment using the equity method
Keeper Technology Co. Ltd. (Keeper Technology)	Associate by investment using the equity method (was a subsidiary until February 2024)
Substantive related party
Epistar Corporation (Epistar)	Its parent company is a director of the Company.
Lextar Electronics Corporation (Lextar)	Its parent company is a director of the Company.

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Prolight Opto Technology Corporation (Prolight Opto)
Lextar Electronics (Chuzhou) Corp. (Lextar Electronics)
Trendylite Corporation (Trendylite)
ENNOSTAR Inc. (ENNOSTAR)

Its parent company is a director of the Company.
Its parent company is a director of the Company.
Its parent company is a director of the Company.
It is a director of the Company.

(II) Operating income

Line Item	Category of related party/Name	2025	2024
Sale	Sub-subsidiary	$ 6	$ 6
	Substantive related party
Lextar Electronics Corporation	189,905	182,797
	Lextar Electronics (Chuzhou) Corp.	24,292	32,629
	Others	1,555	2,218
		$ 215,758	$ 217,650

The selling prices to related parties are equivalent to those to ordinary customers, and the payment terms are implemented in accordance with the Company's payment policy.

(III) Purchase of goods

Category of related party/Name	2025	2024
Substantive related party
Epistar Corporation	$ 47,831	$ 58,902

The purchase prices from related parties are equivalent to those to ordinary clients, and the purchase terms are implemented in accordance with the Company's policy.

(IV) Receivables from related parties

Line Item	Category of related party/Name	December 31, 2025	December 31, 2024
Accounts receivable - related parties	Sub-subsidiary	$ -	$ 31
	Substantive related party
Lextar Electronics Corporation	58,955	38,815
	Lextar Electronics (Chuzhou) Corp.	10,658	9,362
	Others	576	345
		$ 70,189	$ 48,553

The sales between the Company and the related parties are processed per the terms and prices agreed upon by both parties and the payment terms are 90 to 120 days after the end of each month. No guarantee is received for the accounts receivable from related parties still outstanding. No loss allowance was provided for accounts receivable from related parties in 2025 and 2024.

(V) Payables to related parties (excluding loans from related parties)

Line Item	Category of related party/Name	December 31, 2025	December 31, 2024
Accounts payable - related parties	Substantive related party
	Epistar Corporation	$ 10,418	$ 9,688
Other receivables - related parties	Sub-subsidiary	$ 45,722	$ 21,408
	Substantive related party
	Trendylite Corporation	148	-
		$ 45,870	$ 21,408

The Company's purchase price from and processing contracted to related parties are handled in accordance with the general purchase terms; the payment period to related parties and non-related parties is decided per the conditions agreed upon by both parties.

No guarantee is provided for the balance of the outstanding accounts payable to related parties.

(VI) Acquisition of property, plant, and equipment

	Price of acquisition
Category of related party/Name	December 31, 2025	December 31, 2024
Substantive related party
Trendylite Corporation	$ 420	$ -

(VII) Loans to related parties

Category of related party	2025	2024
Interest income
Subsidiary
Keeper Technology	$ -	$ 16
Associate
Keeper Technology	-	3
	$ -	$ 19

The Company provides loans to subsidiaries, at interest rates similar to the market interest rates.

(VIII) Other income

Line Item	Category of related party/Name	2025	2024
Rent income	Subsidiary Long Benefit	$ 34	$ 34
Other income	Sub-subsidiary	$ 19	$ 4

(IX) Contract processing

The processing fees to the Company’s sub-subsidiary Yuanmao contracted to process products for the Company in 2025 and 2024 were NT$109,999 thousand and NT$117,957 thousand, respectively. As of December 31, 2025 and 2024, the outstanding balance was NT$45,722 thousand and NT$21,408 thousand, respectively, accounted for under the processing expense payable.

The pricing of the contract processing expenses is not able to be compared with other manufacturers’ OEM prices and conditions because the Company did not commission other manufacturers for contract processing.

(X) Transactions with other related parties

Line Item	Category of related party/Name	2025	2024
Other expenses	Substantive related party
	Ennostar	$ 535	$ -
	Trendylite	287	-
	Corporation
	Epistar
	Corporation	40	-
		$ 862	$ -

(XI) Compensation of key management personnel

The total compensation of directors and other key management personnel is as follows:

	2025	2024
Short-term employee benefits	$ 28,349	$ 29,344
Post-employment benefits	451	468
	$ 28,800	$ 29,812

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

XXXII. Pledged Assets

The following assets have been provided as collateral for financing loans and security for tariff of imported raw materials:

	December 31, 2025	December 31, 2024
Restricted time deposits
(accounted for in financial assets at amortized cost)	$ 11,142	$ 6,330
Land	62,273	62,273
Buildings	573,338	592,824
	$646,753	$661,427

XXXIII. Significant Contingent Liabilities and Unrecognized Commitments

Except for those already mentioned in other notes, the Company's significant commitments as of the balance sheet date are as follows:

(I) As of December 31, 2025 and 2024, the amount of unused letters of credit issued by the Company for imported raw materials and machinery and equipment was equivalent to NT$21,693 thousand and NT$16,731 thousand, respectively.

(II) As of December 31, 2025, the total price of the uncompleted important equipment and engineering procurement contracts of the Company was equivalent to NT$61,120 thousand, of which NT$19,978 thousand had been paid, which was recognized in prepayments for equipment and unfinished construction and the remaining NT$41,142 thousand had not been paid.

XXXIV. Significant assets and liabilities denominated in foreign currencies

The following information is aggregated in foreign currencies other than the Company's functional currency. The disclosed exchange rates refer to the exchange rates at which the foreign currencies were converted into functional currencies. The significant assets and liabilities denominated in foreign currencies were as follows:

December 31, 2025

	Foreign currency	Exchange rate	Carrying amount
Foreign currency asset
Monetary items
USD	$ 16,007	31.430	$ 503,100
JPY	645	0.2008	130
CNY	67,752	4.496	304,613

78 -

Foreign currency liabilities
Monetary items
USD	4,257	31.430	133,798
JPY	171,227	0.2008	34,382
CNY	10,641	4.496	47,842

December 31, 2024

Foreign currency asset	Foreign currency	Exchange rate	Carrying amount
Monetary items
USD	$ 17,465	32.79	$ 572,590
JPY	83,811	0.21	17,592
CNY	64,804	4.478	290,192
Foreign currency liabilities
Monetary items
USD	1,404	32.79	46,030
JPY	297,654	0.21	62,478
CNY	4,800	4.478	21,494

The (unrealized) gains and losses on foreign currency exchange with a material impact are as follows:

	2025		2024
Foreign currency	Exchange rate	Net Foreign Exchange Gain (Loss)	Exchange rate	Net Foreign Exchange Gain (Loss)
USD	1 USD: 31.430 NTD	$ 1,650	1 USD: 32.79 NTD	$ 27,254
JPY	1 JPY: 0.2008 NTD	( 1,947 )	1 JPY: 0.21 NTD	1,537
CNY	1 CNY: 4.496 NTD	11,666	1 CNY: 4.48 NTD	5,473
Others		16		19
		$ 11,385		$ 34,283

XXXV. Additional Disclosures

(I) Information about significant transactions:

Financing provided to others: None.
Endorsement/guarantee provided: None.
Significant securities held (excluding investment in subsidiaries, associates, and jointly controlled entities): Table 1.
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 2.
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: none.

(II) Information on investees: Table 3.

(III) Information on investments in Mainland China:

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, current profit or loss and investment gains and losses recognized, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 4.
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 5.

(1) The amount and percentage of purchase.

(2) The amount and percentage of sales.

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

(4) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

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

(6) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.

79 -

TYNTEK Corporation
Significant securities held at end of the period
December 31, 2025

Table 1
Unit: In Thousands of New Taiwan Dollars/Thousand Units/Thousand Shares

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	March 31, 2021
				Number of Shares/Units	Carrying amount	Shareholding percentage (%)	Market price
TYNTEK Corporation	First Commercial Bank/gold passbook	None	Financial assets at FVTPL - Current	-	$ 15	-	$ 15
	Chipwell Tech Corporation/stock/common stock	Investee with 1.84% of shares held	Financial assets at FVTOCI - non-current	494	3,736	1.84	3,736
	Brighttek Optoelectronic Co., Ltd./stock/common stock	Investee with 1.50% of shares held	Financial assets at FVTOCI - non-current	1,020	44,421	1.50	44,421
Long Benefit Investment Co., Ltd.	Hanpin Electron Co., Ltd./stock/common stock	None	Financial assets at FVTPL - Current	220	10,098	-	10,098
	Chipwell Tech Corporation/stock/common stock	Investee with 0.76% of shares held	Financial assets at FVTOCI - non-current	204	1,541	0.76	1,541
	Chipstar Tech Corporation/stock/common stock	Investee with 10.95% of shares held	Financial assets at FVTOCI - non-current	698	5,163	10.95	5,163

Note: Refer to Table 3 for the information on subsidiaries and associates.

80 -

TYNTEK Corporation
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital
December 31, 2025

Table 2
Unit: In Thousands of New Taiwan Dollars, Unless Stated Otherwise

Buyer (seller)	Transaction counterparty	Relations	Transaction status				Circumstances and reasons why the transaction terms are different from general ones (Note 1)		Notes/Accounts receivable (payable)		Remark (Note 2)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit period	Unit Price	Credit period	Balance	Percentage of total notes and accounts receivable (payable)
TYNTEK Corporation	Lextar Electronics Corporation	Substantive related party	Sales	$ 189,905	8.15%	O/A with net 120 days after acceptance	$ -	—	$ 58,955	7.93%	—

Note 1: The terms and conditions of related party transactions are the same as those for general ones.
Note 2: If there is any advance receipt (prepayment), the reason, contract terms, amount, and the difference from the general transaction should be stated in the remarks field.
Note 3: Paid-in capital refers to the parent company's paid-in capital. If the issuer's stock is no-par value stock or the par value per share is not NT$10, the requirement regarding transaction amount accounting for 20% of the paid-in capital shall be based on the 10% of equity attributable to the owner of the parent company on the balance sheet.

81 -

TYNTEK Corporation

Information on Investees

For the year ended December 31, 2025

Table 3
Unit: In thousand of New Taiwan Dollars/Thousand Shares

Investor	Investor Company	Location	Main Businesses and Products	Investment Amount		As of March 31, 2020			Gains (losses) on investee	Gains (losses) on investment recognized by the Company
				March 31, 2021	March 31, 2020	Shares	Percentage (%)	Carrying amount
TYNTEK Corporation	TEK Holding Co., Ltd.	3RD FLOOR, YAMRAJ BUILDING, MARKET SQUARE, ROAD TOWN, TORTOLA, BRITISH VIRGIN ISLANDS.	Investment in various overseas businesses	$ 258,290	$ 258,290	6,700	100	$ 272,035	$ 11,989	$ 11,989
	Long Benefit Investment Co., Ltd.	No. 1387, Renai Road, Zhunan Township, Miaoli County	General investment	185,000	185,000	28,749	100	302,377	3,115	3,115
	Hsinjing Holding Co., Ltd.	3F-1, No. 193, Fuxing 2nd Road, Zhubei City, Hsinchu County	General investment	591,378	591,378	17,794	20.20	156,031	( 75,400 )	( 18,771 )
	Coretech Optical Co., Ltd.	7F-6, No. 35, Xintai Road, Zhubei City, Hsinchu County	Machinery, electronic components, power generation, transmission, and distribution machinery, as well as precision equipment manufacturing	5,000	5,000	200	2.08	2,126	451	10
	Keeper Technology	No. 29, Wuquan 7th Road, Wugu District, New Taipei City	Mechanical installation, retail and wholesale of electronic materials, automobile and scooter parts and accessories, traffic sign equipment and other machinery, as well as manufacturing of lighting equipment and other machinery	30,000	30,000	2,033	16.41	20,984	6,125	1,006
TEK Holding Co., Ltd.	Keyway International L.L.C.	3500 South Dupont Highway, Dover, Delaware 19901, U.S.A.	Investment in various overseas businesses	258,768	258,768	-	100	269,118	11,996	11,996
Long Benefit Investment Co., Ltd.	Coretech Optical Co., Ltd.	7F-6, No. 35, Xintai Road, Zhubei City, Hsinchu County	Machinery, electronic components, power generation, transmission, and distribution machinery, as well as precision equipment manufacturing	25,228	25,228	2,000	20.81	21,267	451	94

83 -

Keeper Technology	No. 29, Wuquan 7th Road, Wugu District, New Taipei City	Mechanical installation, retail and wholesale of electronic materials, automobile and scooter parts and accessories, traffic sign equipment and other machinery, as well as manufacturing of lighting equipment and other machinery	48,977	48,977	3,871	31.25	39,947	6,125	1,914

TYNTEK Corporation
Information on investments in Mainland China
For the year ended December 31, 2025

Table 4
Unit: In Thousands of New Taiwan Dollars, Unless Stated Otherwise

I. Information on investments in mainland China:

(I) 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, gains or losses on investment, carrying amount of the investment and repatriations of investment income:

Name of Investee	Main Businesses and Products	Paid-in Capital	Method of Investments	Accumulated Investment Amount from Taiwan at Beginning of Period	Investment Flows		Accumulated Investment Amount from Taiwan at End of Period	% Ownership of Direct or Indirect Investment	Gains (losses) on Investment	Carrying Amount of Investments at End of Period	The Repatriated Proceeds of Investments as of This Period
					Outward	Inward
Yuanmao Opto-electronic Technology (Wuhan) Co., Ltd.	Other light-emitting diode production and sales business	$ 258,290 (USD 6,700 thousand)	Investment in China via a company set up in a third region	$ 258,290 (USD 6,700 thousand)	$ -	$ -	$ 258,290 (USD 6,700 thousand)	100%	$ 11,997	$ 269,098	$ -
Fujian Zhaoyuan Photoelectric Co., Ltd.	Other light-emitting diode production and sales business	6,692,823 (CNY 1,437,000 thousand)	Direct investment in companies in China	468,652 (USD 8,565 thousand and CNY 45,890 thousand)	-	2,145 (CNY 500 thousand)	-	- (Note 1)	-	-	-

Note 1: The Company failed to subscribe to shares arising from capital increase in the proportion of the ownership and disposed of a portion of its investment equity in the company in June 2018 and thus lost significant influence. Therefore, it was reclassified as financial assets measured at FVTPL. The Company disposed of its entire equity interest in Fujian Zhaoyuan Photoelectric Co., Ltd.

in October 2025.

(II) stipulated by Investment Commission, MOEA :

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2021	Investment Amount Authorized by Investment Commission, MOEA	Limit on Investment Amount Stipulated by Investment Commission, MOEA
$258,290 (USD 6,700 thousand)	$742,370 (USD 23,042 thousand)	$2,261,830

TYNTEK Corporation

Significant Transactions with Investee Companies in Mainland China, Either Directly or Indirectly Through a Third Party and Their Prices, Payment Terms, Unrealized Gains Or Losses and Relevant Information

For the year ended December 31, 2025

Table 5
Unit: In Thousands of New Taiwan Dollars, Unless Stated Otherwise

Name of Investee	Transaction Type	Amount	Transaction Terms			Accounts Receivable (Payable)		Unrealized Gains or Losses
			Price	Payment Term	Comparison with General Transaction	Balance	Percentage
Yuanmao Opto-electronic Technology (Wuhan) Co., Ltd.	Contract processing	$ 109,999 (Processing expense)	By negotiation	T/T	O/A with net 120 days	Processing expense payable $45,722	16.39%	$ -

85 -

86 -

§TABLE OF CONTENTS OF SIGNIFICANT ACCOUNTING STATEMENTS§

Item	No./Index
Statement of Assets, Liabilities, and Equity Items
Statement of Cash and Cash Equivalents	Statement 1
Statement of Financial Assets at FVTPL - Current	Statement 2
Statement of Financial Assets at Amortized Cost	Statement 3
Statement of Notes Receivable	Statement 4
Statement of Accounts Receivable	Statement 5
Statement of Other Receivables	Statement 6
Statement of Inventories	Statement 7
Statement of Other Current Assets	Note 16
Statement of Financial Assets at FVTOCI - Non-current	Statement 8
Statement of Changes in Investment Using the Equity Method	Statement 9
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 Right-of-use Assets	Statement 10
Statement of Changes in Accumulated Depreciation of Right-of-use Assets	Statement 11
Statement of Changes in Intangible Assets	Note 15
Statement of Deferred Income Tax Assets	Note 25
Statement of Other Current Assets	Note 16
Statement of Short-term Borrowings	Statement 12
Statement of Financial Assets at FVTPL - Current	Notes 7
Statement of Accounts Payable	Statement 13
Statement of Other Payables and Other Current Liabilities	Note 19
Statement of Lease Liabilities	Statement 14
Statement of Long-term Borrowings	Note 17
Statement of Provisions - Non-current	Note 20
Statement of Deferred Income Tax Liabilities	Note 25
Statement of Other Current Liabilities	Note 19
Statement of Gains or Losses
Statement of Operating Income	Statement 15
Statement of Operating Costs	Statement 16
Statement of Production Overheads	Statement 17
Statement of Operating Expenses	Statement 18
Statement of Other Gains or Losses - Net	Note 24
Statement of Financial Costs	Note 24
Table of Aggregate Employee Benefit, Depreciation, and Amortization Expenses Incurred in Current Period by Function	Statement 19

TYNTEK Corporation
Statement of Cash and Cash Equivalents
December 31, 2025

Statement 1
Unit: In Thousands of New Taiwan Dollars/Foreign Currencies

Item	Amount
Cash on hand and petty cash	$ 125
Cash in banks
Demand deposits in NTD	123,284
Demand deposits in foreign currencies (Note)	101,260
	224,544
Check deposit	444
	$225,113

Note: Including US$1,712 thousand (exchange rate US$1=NT$31.43), JPY144 thousand (exchange rate JPY 1=NT$0.20), HKD 1 thousand (exchange rate HKD 1=NT$4.04), EUR 1 thousand (exchange rate EUR 1=NT$36.90), CNY 10,507 thousand (exchange rate CNY 1=NT$4.50), and CHF 3 thousand (exchange rate CHF 1=NT$39.62)

87 -

88 -

TYNTEK Corporation

Statement of Financial Assets at FVTPL - Current

December 31, 2025

Statement 2

Unit: In Thousands of New Taiwan Dollars/Thousand Shares, Unless Stated Otherwise

Name of financial instruments	Number of shares/lots	Face value (NTD)	Total	Interest rate	Cost of acquisition	Fair value		Changes in fair value attributable to changes in credit risk	Remarks
						Unit price (NTD)	Total
Gold passbook
First Commercial Bank	-	$ -	$ 15	-	$ 15	$ -	$ 15	$ -	—
Forward foreign exchange contracts
Land Bank of Taiwan	-	-	33	-	33	-	33	-	—
Total			$ 48		$ 48		$ 48	$ -

TYNTEK Corporation
Statement of Financial Assets at Amortized Cost
December 31, 2025
Statement 3
Unit: In Thousands of New Taiwan Dollars, Unless Stated Otherwise

Name	Summary	Amount	Period	Annual interest rate (%)	Pledge/Security
Current
Hsinchu Science-based Industrial Park BR, Chang Hwa Bank
Time deposit of NT$100,000 thousand	Time deposits with original maturity date of more than 3 months - not pledged	$ 100,000	2025.09.22–2026.03.22	1.620	None
Business Department, O-Bank
Time deposit of NT$100,000 thousand	Time deposits with original maturity date of more than 3 months - not pledged	100,000	2025.10.16–2026.04.16	1.720	None
Zhunan Branch, Taiwan Cooperative Bank
Time deposit of NT$450,000 thousand	Time deposits with original maturity date of more than 3 months - not pledged	450,000	2025.09.15–2026.03.15	1.620	None
Science Based Industrial Park Branch, Bank of Taiwan
Time deposit of NT$1,033 thousand	Time deposits with original maturity date of more than 3 months - pledge	1,033	2025.03.21–2026.03.21	1.690	Yes
Time deposit of NT$2,059 thousand	Time deposits with original maturity date of more than 3 months - pledge	2,059	2025.03.21–2026.03.21	1.690	Yes
Time deposit of NT$3,336 thousand	Time deposits with original maturity date of more than 3 months - pledge	3,336	2025.10.21–2026.10.17	1.690	Yes
Hsinchu Branch, Cathay United Bank
Time deposit of US$50,000	Time deposits with original maturity date of less than 3 months - pledged	1,571	2025.12.08–2026.01.08	3.600	Yes
Time deposit of US$100,000	Time deposits with original maturity date of less than 3 months - pledged	3,143	2025.12.24–2026.01.24	3.000	Yes
Subtotal		$ 661,142

89 -

90 -

TYNTEK Corporation
Statement of Notes Receivable
December 31, 2025

Statement 4
Unit: NTD thousand

Customer name	Summary	Amount
Non-related parties
Customer A	Payment for purchase	$ 352

TYNTEK Corporation
Statement of Accounts Receivable
December 31, 2025

Statement 5
Unit: NTD thousand

Customer name	Summary	Amount
Non-related parties
Customer B	Payment for purchase	$187,837
Customer C	Payment for purchase	113,238
Customer D	Payment for purchase	47,535
Customer E	Payment for purchase	46,300
Customer F	Payment for purchase	38,608
Others (Note)	Payment for purchase	240,059
		673,577
Related parties
Customer G	Payment for purchase	58,955
Customer H	Payment for purchase	10,658
Others (Note)	Payment for purchase	576
		70,189
		743,766
Less: Allowance for impairment loss		( 765)
		$743,001

Note: The balance of each customer did not exceed 5% of the balance of this account.

91 -

TYNTEK Corporation
Statement of Other Receivables
December 31, 2025

Statement 6
Unit: NTD thousand

Item/Name	Summary	Amount
Non-related parties
Tax refund receivable	Business tax refund receivable	$ 8,091
Other receivables	Interest receivable	59
Other receivables	Others	2,236
		$ 10,386

92 -

TYNTEK Corporation
Statement of Inventories
December 31, 2025

Statement 7
Unit: NTD thousand

Item	Amount
	Cost	Net realizable value (Note)
Raw materials	$139,911	$143,368
Materials	29,509	27,286
Work in process	219,287	391,038
Finished goods	170,866	234,587
Products	1,275	1,275
	$560,848	$797,554

Note: The value of inventories shall be based on the cost and NRV, whichever is lower. The comparison of the cost and NRV is based on individual items except for inventories of the same category. The NRV is the estimated selling price in the ordinary course of business, less the cost of completion and the selling expenses.

93 -

TYNTEK Corporation
Statement of Financial Assets at FVTOCI - Non-current
For the year ended December 31, 2025

Statement 8
Unit: In Thousands of New Taiwan Dollars/Thousand Shares, Unless Stated Otherwise

Name of financial instruments	Opening balance		Valuation gains or losses	Closing balance		Accumulated impairment	Security or pledge	Remarks
	Shares (Thousands)	Fair value		Shares (Thousands)	Fair value
Unlisted stocks
Chipwell Tech Corporation	494	$ 8,827	($ 5,091)	494	$ 3,736	Not applicable	None	—
Stocks listed on TWSE/TPEx and emerging stock markets
Brightek Optoelectronic Co., Ltd.	1,020	50,184	( 5,763)	1,020	44,421	Not applicable	None	—
		$ 59,011	($ 10,854)		$ 48,157

94 -

Statement of Changes in Investment Using the Equity Method

For the year ended December 31, 2025

Unit: In thousand of New Taiwan Dollars/Thousand Shares

TYNTEK Corporation

Statement of Changes in Investment Using the Equity Method

Investor Company	Opening balance		Increase for the current year		Decrease for the current year		Closing balance			Market price or equity value (Note 3)
	Shares	Amount	Shares	Amount (Note 1)	Shares	Amount (Note 2)	Shares	Shareholding percentage %	Amount	Unit Price	Total Price	Pledge
Valuation under equity method
Unlisted stocks
TEK Holding Co., Ltd.	6,700	$ 258,593	-	$ 41,401	-	$ 27,959	6,700	100	$ 272,035	40.60	$ 272,035	None
Long Benefit Investment Co., Ltd.	28,749	326,349	-	6,284	-	30,256	28,749	100	302,377	10.52	302,377	None
Coretech Optical Co., Ltd.	200	6,326	-	106	-	96	200	2.08	6,336	31.68	6,336	None
Keeper Technology	2,033	19,978	-	1,503	-	497	2,033	16.41	20,984	10.32	20,984	None
Publicly listed companies
Hsinjing Holding Co., Ltd.	17,794	153,759	-	21,125	-	18,853	17,794	20.20	156,031	22.90	407,484	None
		765,005		70,419		77,661			757,763		1,009,216
Less: Accumulated impairment - Investments accounted for using equity method		( 4,210 )		-		-			( 4,210 )		-
		$ 760,795		$ 70,419		$ 77,661			$ 753,553		$1,009,216

Note 1: The increase of NT$70,419 thousand this year includes investment gains of NT$19,173 thousand recognized, unrealized gains and losses of financial assets of subsidiaries and affiliated companies recognized under the equity method of NT$711 thousand, capital surplus- changes in net equity of associates recognized under the equity method of NT$21,123 thousand, and the exchange difference on the translation of the financial statements of foreign operations of NT$29,412 thousand.
Note 2: The decrease for the year amounted to NT$77,661 thousand, mainly comprising a recognized investment loss of NT$21,824 thousand, exchange differences on translation of foreign operations' financial statements of NT$27,958 thousand, dividends received from subsidiaries and associates of NT$22,590 thousand, unrealized gains and losses on financial assets of subsidiaries and associates recognized under the equity method of NT$5,210 thousand, and changes in capital surplus arising from variations in associates' equity under the equity method of NT$79 thousand.
Note 3: The market price refers to the closing price on December 31, 2025; the net equity value was mainly calculated based on the investees' financial statements and the Company's ownership.

96 -

TYNTEK Corporation

Statement of Changes in Right-of-use Assets

For the year ended December 31, 2025

Statement 10
Unit: NTD thousand

Item	Opening balance	Increase for the current year	Decrease for the current year	Closing balance
Land	$ 72,222	$ 3,672	$ 2,267	$ 73,627
Transport Equipment	1,562	2,884	-	4,446
Other Equipment	3,268	-	-	3,268
	$ 77,052	$ 6,556	$ 2,267	$ 81,341

97 -

TYNTEK Corporation

Statement of Changes in Accumulated Depreciation of Right-of-use Assets

For the year ended December 31, 2025

Statement 11
Unit: NTD thousand

Item	Opening balance	Increase for the current year	Decrease for the current year	Closing balance
Land	$ 15,465	$ 2,512	$ 2,267	$ 15,710
Transport Equipment	564	809	-	1,373
Other Equipment	381	653	-	1,034
	$ 16,410	$ 3,974	$ 2,267	$ 18,117

TYNTEK Corporation
Statement of Short-term Borrowings
December 31, 2025

Statement 12
Unit: NTD thousand

Type of borrowings and creditors	Ending balance	Term of contract	Interest rate range (%)	Financing facilities	Pledge/Security
Borrowings for purchase of materials
First Commercial Bank	$ 21,768	2025.09.25–2026.06.15	1.69–5.00	$ 40,000	None
Bank of Taiwan	20,755	2025.07.30–2026.06.29	1.67–5.30	300,000	None
Taipei Fubon Bank	1,825	2025.10.15–2026.06.03	1.73–4.54	87,150	None
Land Bank of Taiwan	1,721	2025.10.09–2026.04.11	1.73–4.98	40,000	None
Chang Hwa Commercial Bank	95	2025.11.04–2026.02.02	1.85	50,000	None
	$ 46,164			$ 517,150

Note: The Company’s short-term borrowing credit line totals approximately NT$807,150 thousand (including the unused credit line of NT$290,000 thousand for short-term borrowings). As of December 31, 2025, the Company’s unutilized short-term borrowing credit line amounted to approximately NT$760,986 thousand.

98 -

TYNTEK Corporation
Statement of Accounts Payable
December 31, 2025

Statement 13
Unit: NTD thousand

Name	Summary	Amount
Non-related parties
Supplier A	Payment for purchase	$ 29,986
Supplier B	Payment for purchase	21,353
Supplier C	Payment for purchase	18,674
Supplier D	Payment for purchase	18,253
Others (Note)	Payment for purchase	199,156
		287,422
Related parties
Supplier E	Payment for purchase	10,418
		$297,840

Note: The balance of each customer did not exceed 5% of the balance of this account.

99 -

TYNTEK Corporation
Statement of Lease Liabilities
December 31, 2025

Statement 14
Unit: NTD thousand

Item	Summary	Lease term	Discount rate	Amount
Land	Mainly used for factories and offices.	2017.11.01~2037.10.31	1.80%	$ 58,117
Land	Primarily used for warehouse storage	2025.07.01~2030.06.30	2.01%	1,660
Land	Primarily used for warehouse storage	2025.07.01~2030.06.30	2.01%	1,660
Transport Equipment	Used for corporate matters	2023.11.28~2026.11.28	1.88%	486
Transport Equipment	Used for corporate purposes	2025.07.01~2030.06.30	2.01%	2,609
Other Equipment	Used for business matters	2024.05.01~2029.04.30	2.01%	2,269
				$ 66,801

100 -

TYNTEK Corporation
Statement of Operating Income
For the year ended December 31, 2025

Statement 15
Unit: NTD thousand

Item	Quantity (thousand units)	Amount
Light-receiving components	16,394	$ 1,645,361
Compound semiconductor	6,829	673,723
Others	8,153	9,643
		$ 2,328,727

101 -

TYNTEK Corporation
Statement of Operating Costs
For the year ended December 31, 2025

Statement 16
Unit: NTD thousand

Item	Amount
Merchandise inventory at the beginning of year	$ -
Add: Purchase of goods during the year	53,438
Others	7
Less: Merchandise inventory at the end of year	( 1,275 )
Cost of purchase and sales	52,170
Consumption of raw materials
Materials at the beginning of year	131,994
Add: Purchase of materials during the year	591,018
Others	3,807
Less: Inventory at the end of year	( 139,911 )
Raw materials sold	( 176,048 )
Reclassified to operating expenses	( 17,375 )
Others	( 9 )
Consumption of raw materials during the year	393,476
Consumption of supplies
Supplies at the beginning of year	25,622
Add: Purchase of materials during the year	190,537
Others	884
Less: Supplies at the end of year	( 29,509 )
Supplies sold	( 205 )
Reclassified to operating expenses	( 2,702 )
Others	( 1,394 )
Consumption of supplies during the year	183,233
Direct labor	232,226
Production overheads	976,370
Manufacturing cost	1,785,305
Add: Work-in-progress at the beginning of year	246,729
Others	28,925
Less: Work-in-progress at the end of year	( 219,287 )
Work-in-progress sold	( 143,896 )
Reclassified to operating expenses	( 1,599 )
Cost of finished goods	1,696,177
Add: Finished goods at the beginning of year	221,530
Others	3,344
Less: Finished goods at the end of year	( 170,866 )
Reclassified to operating expenses	( 1,709 )
Others	( 9,267 )
Cost of sales of self-made products	1,739,209
Cost of raw materials sold	176,048
Cost of supplies sold	205
Cost of work-in-progress sold	143,896
Others	( 34,702 )
Cost of production and sales	2,024,656
Operating costs	$ 2,076,826

102 -

TYNTEK Corporation
Statement of Production Overheads
For the year ended December 31, 2025

Statement 17
Unit: NTD thousand

Item	Amount
Depreciation	$236,320
Consumption of supplies	185,570
Processing expenses	204,229
Direct labor	150,070
Utilities expense	135,225
Others (Note)	64,956
	$976,370

Note: Each amount did not exceed 5% of the balance of this account.

103 -

TYNTEK Corporation
Statement of Operating Expenses
For the year ended December 31, 2025

Statement 18
Unit: NTD thousand

Item	Amount
	Selling and marketing expenses	Administrative expenses	Research and development expenses
Wages and salaries	$ 18,072	$ 69,179	$ 66,229
Freight cost	5,514	2	22
Commissions expense	3,124	-	-
Import/export expense	2,525	-	-
Travel expenses	2,282	1,200	583
Depreciation	1,128	18,410	12,613
Miscellaneous expenses	667	12,340	3,709
Insurance expenses	15	10,358	-
Other expenses (Note)	4,323	35,684	38,079
	$ 37,650	$ 147,173	$ 121,235

Note: Each amount did not exceed 5% of the balance of this account.

104 -

TYNTEK Corporation

Table of Aggregate Employee Benefit, Depreciation, and Amortization Expenses Incurred in Current Period by Function

For the Years Ended December 31, 2025 and 2024

Statement 19

Unit: NTD thousand

	2025			2024
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expense
Salaries and wages	$367,248	$141,683	$508,931	$342,342	$174,089	$516,431
Pension	14,462	6,417	20,879	13,459	6,306	19,765
Meal expense	30,438	6,550	36,988	29,037	6,367	35,404
Employee benefit fund	2,284	573	2,857	2,251	590	2,841
Employee insurance premium	42,949	14,485	57,434	39,136	14,340	53,476
Remuneration of directors	-	5,380	5,380	-	6,695	6,695
Total	$457,381	$175,088	$632,469	$426,225	$208,387	$634,612
Depreciation expenses	$236,320	$32,151	$268,471	$238,874	$32,574	$271,448
Amortization expenses	$198	$5,139	$5,337	$5	$3,463	$3,468

Notes:

The number of employees for this year and the previous year were 790 and 774, respectively, of which the number of directors who did not serve as employees concurrently was five people respectively.
Companies whose stocks have been listed on the Taiwan Stock Exchange or Taipei Exchange shall additionally disclose the following information:

(1) The average employee benefits expense for the year was NT$799 thousand (Total employee benefits expense for the year—Total directors' remuneration/Number of employees for the year—Number of directors who are not employees concurrently).

The average employee benefits expense for the previous year was NT$817 thousand (Total employee benefits expense for the year—Total directors' remuneration/Number of employees for the year—Number of directors who are not employees concurrently).

(2) The average employee salaries and wages for the year was NT$648 thousand (Total salaries and wages for the year/ "Number of employees for the year- Number of directors who are not employees concurrently").

The average employee salaries and wages for the previous year was NT$672 thousand (Total salaries and wages for the year/ Number of employees for the year- Number of directors who are not employees concurrently).

(3) The average employee salary and wage adjustment was (4) % (Average employee salaries and wages for the year- Average employee salaries and wages for the previous year/ Average employee salaries and wages for the previous year).

(4) The Company does not engage any supervisor, so it does not intend to disclose the supervisor's compensation, remuneration, and professional service expense.

(5) The Company's salary and remuneration policy (including directors, managers, and employees)

A. The Company compensates directors based on their participation and contribution to the Company's operations while honoraria are granted in fixed amounts after taking into consideration the standard in the industry. According to the Company's Articles of Incorporation, if the Company generates profits in a given year, it shall allocate not more than 5% as directors' remuneration and between 5% and 15% as employees' remuneration. Of the employees'

remuneration, not less than 20% shall be allocated to basic-level employees. The allocation amounts are determined by resolution of the Board of Directors and reported to the shareholders' meeting.

B. The compensation standards for the President, vice presidents, and managers are determined after their individual performance, contribution to the overall operation of the Company, and the standards in the market are considered, and then deliberated by the remuneration committee before submitted to the board of directors for resolution.

C. The Company's employee salary and remuneration policy is based on each employee's position, contribution to the Company, performance, and other aspects; the overall salary and remuneration package includes monthly salary, quarterly bonuses based on the Company's operating performance, and employee compensation based on annual profitability. In addition, the Company considers the general standards in the same industry and reviews internal fairness to continuously optimize employees' salary and remuneration.

106 -

AI assistant

TYNTEK — Audit Report / Information 2025

52074_rns_2026-04-15_ac134b4a-b12f-431b-9a8b-c8b22324cb2e.pdf

TYNTEK Corporation

Standalone Financial Statements and Independent Auditors' Report

Audit opinion

Basis for audit opinion

Key audit matters

Authenticity of sales revenue

Responsibilities of the management and the governing body for the parent company only financial statements

Auditor’s responsibilities for the audit of the parent company’s only financial statements

VIII. Financial assets at FVTOCI

IX. Financial assets at amortized cost

Hsinjing

Keeper Technology

XIII. Property, plant, and equipment

XIV. Lease arrangements

XXII. Equity

(I) Ordinary shares

(II) Capital reserve

(VII) Employees' compensation and remuneration of directors

XXVII. Government grants

XXVIII. Disposal of investment in subsidiary—loss of control

XXIX. Capital risk management

XXX. Financial instruments

(I) Fair value—financial instruments not at fair value

(II) Fair value—financial instruments at fair value on a recurring basis

1. Degree of fair value measurements

Sensitivity analysis

3. Liquidity risk

(2) Financing facilities

XXXI. Related Party Transactions

(I) Related party name and category

XXXII. Pledged Assets

XXXIII. Significant Contingent Liabilities and Unrecognized Commitments

XXXIV. Significant assets and liabilities denominated in foreign currencies

§TABLE OF CONTENTS OF SIGNIFICANT ACCOUNTING STATEMENTS§

TYNTEK Corporation

TYNTEK Corporation

Statement of Changes in Investment Using the Equity Method

TYNTEK Corporation

TYNTEK Corporation

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TYNTEK Audit Report / Information 2025