English Translation of Financial Statements and a Report Originally Issued in Chinese

U-TECH MEDIA CORPORATION
PARENT-COMPANY-ONLY FINANCIAL STATEMENTS
WITH INDEPENDENT AUDITORS' REPORT
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

Address: No. 222, Huaya 2nd Road, Guishan District, Taoyuan City 333411, Taiwan (R.O.C.)
Telephone: (03) 396-1111

Notice to Readers

The reader is advised that these parent-company-only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

Parent-Company-Only Financial Statements

Table of Contents

Item	Page
1. Cover	1
2. Table of Contents	2
3. Independent Auditors’ Report	3-7
4. Parent-Company-Only Balance Sheets	8-9
5. Parent-Company-Only Statements of Comprehensive Income	10
6. Parent-Company-Only Statements of Changes in Equity	11
7. Parent-Company-Only Statements of Cash Flows	12
8. Notes to the Parent-Company-Only Financial Statements
(1) History and Organization	13
(2) Date and Procedure of Authorization of Financial Statements for Issue	13
(3) Newly Issued or Revised Standards and Interpretations	13-18
(4) Summary of Material Accounting Policies	18-36
(5) Significant Accounting Judgements, Estimates and Assumptions	36-37
(6) Contents of Significant Accounts	37-63
(7) Related Party Transactions	63-68
(8) Assets Pledged as Security	68
(9) Commitments and Contingencies	68-69
(10) Losses Due to Major Disasters	69
(11) Significant Subsequent Events	69
(12) Others	70-81
(13) Notes for Disclosures
A. Information Related to Significant Transactions	81, 82-83
B. Information on Investees	81, 84-85
C. Information on Investments in Mainland China	81
9. Details of Significant Accounts	86-108

English Translation of a Report Originally Issued in Chinese

Independent Auditors' Report

To U-Tech Media Corporation:

Audit Opinion

We have audited the accompanying parent-company-only balance sheets of U-Tech Media Corporation (the "Company") as of December 31, 2025 and 2024, and the related parent-company-only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the parent-company-only financial statements, including the summary of material accounting policies (together "the parent-company-only financial statements").

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter - Making Reference to the Audits of Component Auditors section of our report), the parent-company-only financial statements referred to above present fairly, in all material respects, the parent-company-only financial positions of the Company as of December 31, 2025 and 2024, and its financial performance and cash flows for the years ended December 31, 2025 and 2024, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

Revenue Recognition

The main source of revenue of the Company is the sales of pre-recorded optical discs, which amounted to $367,048 thousand for the year ended December 31, 2025. Because of the characteristics of the market industry and the needs of customers, different types of transaction conditions are involved. Therefore, we need to judge and determine the performance obligations and the point at which they are satisfied, so the recognition of contract revenue is determined to be a key audit matter.

Our audit procedures included (but were not limited to) evaluating the appropriateness of management's accounting policies for revenue recognition and perform transaction flow understanding of the revenue recognition process for identified performance obligations; evaluating and testing the effectiveness of the design and implementation of internal controls related to the timing of revenue recognition for performance obligations; performing analytical procedures on selling price, sales volume, cost and gross margin for each product category, and perform analytical procedures for the top ten sales vendors and customers; performing test of details of transaction on selected samples and reviewing the transaction terms in the orders and related sales documents to confirm the appropriateness of the timing of revenue recognition when performance obligations are satisfied; performing revenue cutoff testing and verifies the related certificates for a period before and after the balance sheet date to determine the appropriate period for revenue recognition; performing general journal entry testing.

We have also evaluated the appropriateness of related disclosure in Notes 4 and 6 to the parent-company-only financial statements.

Allowance for Accounts Receivable

The accounts receivable of the Company as of December 31, 2025 amounted to $55,468 thousand, and had a significant impact on the parent-company-only financial statements. Since the amount of allowance for accounts receivable is measured by the lifetime expected credit losses, the measurement process shall appropriately distinguish groups of accounts receivable, and judge and analyze the application of related assumptions in the measurement process, including the consideration of appropriate account aging interval, loss rate of each account aging interval and its forward-looking information. As the measurement of expected credit loss involves making judgment, analysis and estimates, and the result will affect the net accounts receivable, we therefore considered this a key audit matter. Our audit procedures included (but were not limited to) confirming whether customer groups with significantly different loss patterns are appropriately grouped; checking the management's evaluation procedure of loss allowance, and randomly selecting delivery orders to check against the account receivable aging schedule to verify the correctness of the account receivable aging interval while performing the internal control review; and testing the preparation matrix, including evaluating whether the determination of each group's aging interval was reasonable and checking the correctness of the original voucher based on the basic information; testing the relevant statistical information of loss rate calculated by roll rate; considering the reasonableness of the forward-looking information included in the loss rate evaluation; evaluating whether the forward-looking information affected the loss rate; in addition, analytical procedure review was performed to evaluate whether there were material abnormality between the comparative changes of the turnover rate for two periods of the accounts receivable. reviewing the subsequent period collection of receivables with respect to clients with higher accounts receivable at end of period and assessing the recoverability of accounts receivable. We have also evaluated the appropriateness of related disclosure in Notes 5, 6 and 12 to the parent-company-only financial statements.

Other Matter - Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain associates accounted for under the equity method. Those financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the audit reports of other auditors. These associates under equity method amounted to $8,067 thousand and $16,026 thousand, both representing 0% of total assets as of December 31, 2025 and 2024. The related shares of profit (loss) of associates and joint ventures accounted for using the equity method amounted to $(7,305) thousand and $385 thousand, representing (118)% and 0% of the income before income tax for the years ended December 31, 2025 and 2024, respectively.

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

Management is responsible for the preparation and fair presentation of the parent-company-only financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China and for such internal control as management determines is necessary to enable the preparation of parent-company-only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors' Responsibilities for the Audit of the Parent-Company-Only Financial Statements

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

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

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

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

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

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

Hsieh, Sheng-An

Chiu, Wan-Ju

Ernst & Young, Taiwan
March 6, 2026

Notice to Readers

The accompanying parent-company-only financial statements are intended only to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent-company-only financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent-company-only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or the Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

English Translation of Financial Statements Originally Issued in Chinese
U-Tech Media Corporation
Parent-Company-Only Balance Sheets
December 31, 2025 and December 31, 2024
(Expressed in thousands of New Taiwan Dollars)

Assets		Notes	December 31, 2025		December 31, 2024
Code	Accounts		Amount	%	Amount	%
	Current assets
1100	Cash and cash equivalents	4 & 6.(1)	$377,011	10	$307,288	9
1110	Financial assets at fair value through profit or loss - current	4 & 6.(2)	3,100	-	63,440	2
1150	Notes receivable, net	4 & 6.(4)	381	-	807	-
1170	Accounts receivable, net	4 & 6.(5)	55,267	2	69,766	2
1180	Accounts receivable - related parties, net	4 & 6.(5) & 7	201	-	147	-
1220	Current tax assets	4	396	-	240	-
130X	Inventories	4 & 6.(6)	38,735	1	41,561	1
1470	Other current assets	4 & 7	12,646	-	12,655	-
11XX	Total current assets		487,737	13	495,904	14
	Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current	4 & 6.(3)	45,523	1	25,995	1
1550	Investments accounted for using the equity method	4 & 6.(7)	2,238,055	62	2,058,383	60
1600	Property, plant and equipment	4, 6.(8), 7 & 8	685,914	19	695,701	20
1760	Investment property, net	4 & 6.(9)	139,972	4	142,043	4
1840	Deferred tax assets	4 & 6.(20)	23,876	1	19,394	1
1900	Other non-current assets		1,160	-	1,160	-
15XX	Total non-current assets		3,134,500	87	2,942,676	86
1XXX	Total assets		$3,622,237	100	$3,438,580	100

(The accompanying notes are integral part of the parent-company-only financial statements)

Chairman: Yang, Wei-fen
General Manager: Lo, Yi-Fu
Chief Accounting Officer: Lai, Shu-Ping

English Translation of Financial Statements Originally Issued in Chinese
U-Tech Media Corporation
Parent-Company-Only Balance Sheets (Continued)
December 31, 2025 and December 31, 2024
(Expressed in thousands of New Taiwan Dollars)

Liabilities and equity		Notes	December 31, 2025		December 31, 2024
Code	Accounts		Amount	%	Amount	%
	Current liabilities
2100	Short-term borrowings	4, 6.(10) & 8	$99,000	3	$120,000	4
2150	Notes payable	4	809	-	1,271	-
2170	Accounts payable	4	17,649	-	12,160	-
2180	Accounts payable - related parties	4 & 7	39	-	4,937	-
2200	Other payables	4	57,374	2	64,665	2
2220	Other payables - related parties	4 & 7	34	-	76	-
2300	Other current liabilities	4 & 6.(14)	1,744	-	1,572	-
2322	Current portion of long-term borrowings	4, 6.(11) & 8	128,000	4	143,500	4
21XX	Total current liabilities		304,649	9	348,181	10
	Non-current liabilities
2540	Long-term borrowings	4, 6.(11) & 8	847,816	23	528,000	15
2570	Deferred tax liabilities	4 & 6.(20)	3,309	-	3,780	-
2600	Other non-current liabilities		9,135	-	9,085	-
2640	Net defined benefit liabilities - non-current	4 & 6.(12)	9,704	-	20,150	1
25XX	Total non-current liabilities		869,964	23	561,015	16
2XXX	Total liabilities		1,174,613	32	909,196	26
31XX	Equity
3100	Capital
3110	Common stock	6.(13)	1,549,845	43	1,549,845	45
3200	Capital Surplus	6.(13)	585,715	16	588,142	17
3300	Retained earnings	6.(13)
3310	Legal reserve		103,282	3	94,676	3
3320	Special reserve		56,752	2	47,882	1
3350	Unappropriated earnings		219,132	6	305,591	9
	Total retained earnings		379,166	11	448,149	13
3400	Other equity	4
3410	Exchange differences resulting from translating the financial statements of foreign operations		(25,043)	(1)	(6,894)	-
3420	Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income		(42,059)	(1)	(49,858)	(1)
3XXX	Total equity		2,447,624	68	2,529,384	74
	Total liabilities and equity		$3,622,237	100	$3,438,580	100

(The accompanying notes are integral part of the parent-company-only financial statements)

Chairman: Yang, Wei-fen
General Manager: Lo, Yi-Fu
Chief Accounting Officer: Lai, Shu-Ping

English Translation of Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in thousands of New Taiwan Dollars)

Code	Accounts	Notes	2025		2024
			Amount	%	Amount	%
4000	Operating revenue	4, 6.(14) & 7	$367,048	100	$449,789	100
5000	Operating costs	6.(6), 6.(12), 6.(17) & 7	(280,348)	(76)	(335,357)	(75)
5900	Gross profit		86,700	24	114,432	25
6000	Operating expenses	6.(12), 6.(16), 6.(17) & 7
6100	Sales and marketing expenses		(28,700)	(8)	(30,999)	(7)
6200	General and administrative expenses		(64,409)	(18)	(68,797)	(15)
	Total operating expenses		(93,109)	(26)	(99,796)	(22)
6900	Operating income (loss)		(6,409)	(2)	14,636	3
7000	Non-operating income and expenses	4, 6.(18) & 7
7100	Interest income		3,380	1	4,700	1
7010	Other income		31,547	9	26,091	6
7020	Other gains and losses		(1,165)	-	48,924	11
7050	Finance costs		(19,688)	(5)	(14,849)	(3)
7070	Share of profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method		(1,459)	-	5,714	1
	Total non-operating income and expenses		12,615	5	70,580	16
7900	Income before income tax		6,206	3	85,216	19
7950	Income tax profit	4 & 6.(20)	416	-	(377)	-
8200	Net income		6,622	3	84,839	19
8300	Other comprehensive loss (income)	4 & 6.(19)
8310	Not to be reclassified to profit or loss in subsequent periods
8311	Remeasurements of defined benefit plan		1,429	-	3,784	1
8316	Unrealized gains from equity instrument investments measured at fair value through other comprehensive income		(1,270)	-	1,232	-
8330	Share of other comprehensive income of subsidiaries, associates and joint ventures - not reclassified to profit or loss		9,686	3	(4,297)	(1)
8360	To be reclassified to profit or loss in subsequent periods
8361	Exchange differences resulting from translating the financial statements of foreign operations		(22,686)	(6)	(7,397)	(2)
8399	Income tax relating to components of other comprehensive income that will be reclassified to profit or loss	4 & 6.(20)	4,537	1	1,479	-
	Total other comprehensive loss (income), net of tax		(8,304)	(2)	(5,199)	(2)
8500	Total comprehensive income		$(1,682)	1	$79,640	17
	Earnings per share (in New Taiwan Dollars)	6.(21)
9750	Basic earnings per share		$0.04		$0.55
9850	Diluted earnings per share		$0.04		$0.55

(The accompanying notes are integral part of the parent-company-only financial statements)

Chairman: Yang, Wei-fen

General Manager: Lo, Yi-Fu

Chief Accounting Officer: Lai, Shu-Ping

English Translation of Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in thousands of New Taiwan Dollars)

Code	Items	Capital	Capital Surplus	Retained earnings			Other equity		Total equity
				Legal reserve	Special reserve	Unappropriated earnings	Exchange differences resulting from translating the financial statements of foreign operations	Unrealized gains (losses) on financial assets at fair value through other comprehensive income
		3100	3200	3310	3320	3350	3410	3420	3XXX
A1	Balance as at January 1, 2024	$1,459,845	$531,482	$87,515	$48,244	$303,826	$(976)	$(46,906)	$2,383,030
	Appropriation and distribution of 2023 retained earnings:
B1	Legal reserve	-	-	7,161	-	(7,161)	-	-	-
B5	Cash dividends	-	-	-	-	(77,492)	-	-	(77,492)
B17	Special reserve reversed	-	-	-	(362)	362	-	-	-
	Other changes in capital surplus:
C7	Changes in associates and joint ventures accounted for using the equity method	-	13,508	-	-	(2,454)	-	-	11,054
C17	Other changes in capital surplus	-	92	-	-	-	-	-	92
D1	Net income for the year ended December 31, 2024	-	-	-	-	84,839	-	-	84,839
D3	Other comprehensive income (loss), net of tax for the year ended December 31, 2024	-	-	-	-	3,671	(5,918)	(2,952)	(5,199)
D5	Total comprehensive income (loss)	-	-	-	-	88,510	(5,918)	(2,952)	79,640
E1	Issuance of Common Stock	90,000	45,000	-	-	-	-	-	135,000
M5	The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries	-	(1,940)	-	-	-	-	-	(1,940)
Z1	Balance as at December 31, 2024	$1,549,845	$588,142	$94,676	$47,882	$305,591	$(6,894)	$(49,858)	$2,529,384
A1	Balance as at January 1, 2025	$1,549,845	$588,142	$94,676	$47,882	$305,591	$(6,894)	$(49,858)	$2,529,384
	Appropriation and distribution of 2024 retained earnings:
B1	Legal reserve	-	-	8,606	-	(8,606)	-	-	-
B3	Special reserve	-	-	-	8,870	(8,870)	-	-	-
B5	Cash dividends	-	-	-	-	(77,492)	-	-	(77,492)
	Other changes in capital surplus:
C7	Changes in associates and joint ventures accounted for using the equity method	-	(2,209)	-	-	(159)	-	-	(2,368)
C17	Other changes in capital surplus	-	35	-	-	-	-	-	35
D1	Net income for the year ended December 31, 2025	-	-	-	-	6,622	-	-	6,622
D3	Other comprehensive loss (income), net of tax for the year ended December 31, 2025	-	-	-	-	1,718	(18,149)	8,127	(8,304)
D5	Total comprehensive income (loss)	-	-	-	-	8,340	(18,149)	8,127	(1,682)
M5	The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries	-	(253)	-	-	-	-	-	(253)
Q1	Disposal of equity instrument investments measured at fair value through other comprehensive income	-	-	-	-	328	-	(328)	-
Z1	Balance as at December 31, 2025	$1,549,845	$585,715	$103,282	$56,752	$219,132	$(25,043)	$(42,059)	$2,447,624

(The accompanying notes are integral part of the parent-company-only financial statements)

Chairman: Yang, Wei-fen

General Manager: Lo, Yi-Fu

Chief Accounting Officer: Lui, Shu-Ping

English Translation of Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in thousands of New Taiwan Dollars)

Code	Items	2025	2024	Code	Items	2025	2024
		Amount	Amount			Amount	Amount
A10000	Net income before tax	$6,206	$85,216	B00010	Acquisition of financial assets at fair value through other comprehensive income	(26,200)	-
A20000	Adjustments to reconcile profit (loss):			B00020	Disposal of financial assets at fair value through other comprehensive income	2,380	200
A20010	Income and expense adjustments:			B00030	Proceeds from capital return of financial assets at fair value through other comprehensive income	3,021	10,760
A20100	Depreciation and other losses	12,879	12,454	B00100	Acquisition of financial assets at fair value through profit or loss	(7,600)	-
A20400	Net profit of financial assets and liabilities as measured at fair value in other comprehensive gains or losses	(4,130)	(2,110)	B00200	Disposal of financial assets at fair value through profit or loss	72,070	-
A20900	Interest expense	19,688	14,849	B01800	Acquisition of investments accounted for using the equity method	(200,000)	(639,994)
A21200	Interest income	(3,380)	(4,700)	B01900	Disposal of investments accounted for using the equity method	4,874	(54,355)
A21300	Dividend income	(434)	(79)	B02700	Acquisition of property, plant and equipment	(1,021)	(8,723)
A22400	Share of profit of subsidiaries, associates and joint ventures accounted for using the equity method	1,459	(5,714)	B03800	Decrease in refundable deposits	-	1,130
A23700	Impairment losses on non-financial assets	-	6,097	B07600	Dividends received	933	79
A23100	Gain on disposal of investments	(2,124)	-	BBBB	Net cash used in investing activities	(151,543)	(690,903)
A30000	Changes in operating assets and liabilities:			CCCC	Cash flows from financing activities:
A31130	Decrease (increase) in notes receivable	426	(140)	C00100	Increase in short-term borrowings	(21,000)	45,000
A31150	Decrease in accounts receivable	14,499	15,273	C01600	Increase in long-term borrowings	1,025,816	497,000
A31160	Increase in accounts receivable - related parties	(54)	(147)	C01700	Repayments of long-term borrowings	(721,500)	(245,500)
A31200	Decrease in inventories	2,826	10,308	C03100	Decrease in deposits received	50	-
A31240	Decrease (increase) in other current assets	75	(1,190)	C04500	Cash dividends	(77,492)	(77,492)
A32130	(Decrease) increase in notes payable	(462)	565	C04600	Issuance of Common Stock	-	135,000
A32150	Increase (decrease) in accounts payable	5,489	(16,731)	C09900	Recovery of unclaimed dividends	35	92
A32160	(Decrease) increase in accounts payable - related parties	(4,898)	2,626	CCCC	Net cash provided by financing activities	205,909	354,100
A32180	Decrease in others payables	(7,574)	(12,575)
A32190	Decrease in others payables - related parties	(42)	(170)	EEEE	Net Increase (decrease) in cash and cash equivalents	69,723	(244,496)
A32230	Increase in other current liabilities	172	196	E00100	Cash and cash equivalents at beginning of period	307,288	551,784
A32240	Decrease in defined benefit liabilities	(9,017)	(889)	E00200	Cash and cash equivalents at end of period	$377,011	$307,288
A33000	Cash inflow generated from operations	31,604	103,139
A33100	Interest received	3,470	4,768
A33300	Interest paid	(19,405)	(14,520)
A33500	Income tax paid	(312)	(1,080)
AAAA	Net cash provided by operating activities	15,357	92,307

(The accompanying notes are integral part of the parent-company-only financial statements)

Chairman: Yang, Wei-fen

General Manager: Lo, Yi-Fu

Chief Accounting Officer: Lai, Shu-Ping

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements

For the Years Ended December 31, 2025 and 2024

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

1. History and Organization

U-Tech Media Corporation (the "Company") was established on May 19, 1994. On October 16, 1999, the Company was approved by the competent authorities for a public offering of its shares. The Company's shares were approved for trading on the Taiwan Stock Exchange (TWSE) on October 29, 2002. Its registered office and principal place of business is at No. 222, Huaya 2nd Road, Guishan District, Taoyuan City 333411, Taiwan (R.O.C.). The Company's business is mainly the manufacture and sale of pre-recorded optical discs.

Ritek Corporation failed to obtain a majority of the board seats in the third quarter of 2024 and therefore lost the substantial control over the Company. Consequently, Ritek Corporation is no longer the parent company of the Company, nor the ultimate controller of the company to which the Company belongs.

2. Date and Procedure of Authorization of Financial Statements for Issue

The parent-company-only financial statements of the Company for the years ended December 31, 2025 and 2024 were authorized for issue by the Company's board of directors (hereinafter "the Board of Directors") on March 6 2026.

3. Newly Issued or Revised Standards and Interpretations

(1) Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission ("FSC") and become effective for annual periods beginning on or after January 1, 2025. The adoption of these new standards and amendments had no material impact on the Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board ("IASB") which have been endorsed by FSC, and not yet adopted by the Company as at the date when the Company's financial statements were authorized for issue, are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 17 “Insurance Contracts”	1 January 2023
b	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	1 January 2026
c	Annual Improvements to IFRS Accounting Standards – Volume 11	1 January 2026
d	Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7	1 January 2026

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese
U-Tech Media Corporation
Notes to Parent-Company-Only Financial Statements (Continued)
(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(a) IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a company of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a company of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after 1 January 2023

(b) Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7

The amendments include:

(1) Clarify that a financial liability is derecognised on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.
(2) Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.
(3) Clarify the treatment of non-recourse assets and contractually linked instruments.
(4) Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income.

(1) Amendments to IFRS 1
The amendments mainly improve the consistency in wording between first-time adoption of IFRS and requirements for hedge accounting in IFRS 9.

(2) Amendments to IFRS 7
The amendments update an obsolete cross-reference relating to gain or loss on derecognition.

(3) Amendments to Guidance on implementing IFRS 7
The amendments improve some of the wordings in the implementation guidance, including the introduction, disclosure of deferred difference between fair value and transaction price and credit risk disclosures.

(4) Amendments to IFRS 9
The amendments add a cross-reference to resolve potential confusion for a lessee applying the derecognition requirements and clarify the term “transaction price”.

(5) Amendments to IFRS 10
The amendments remove the inconsistency between paragraphs B73 and B74 of IFRS 10.

(6) Amendments to IAS 7
The amendments remove a reference to “cost method” in paragraph 37 of IAS 7.

(d) Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7

The amendments include:

(1) Clarify the application of the ‘own-use’ requirements.
(2) Permit hedge accounting if these contracts are used as hedging instruments.
(3) Add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows.

The abovementioned standards and amendments are applicable for annual periods beginning on or after 1 January 2026 and have no material impact on the Company.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(3) Standards or interpretations issued, revised or amended, by IASB which have not been endorsed by FSC, and not yet adopted by the Company as at the date when the Company's financial statements were authorized for issue, are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 18 “Presentation and Disclosure in Financial Statements”	1 January 2027 (Note)
c	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	1 January 2027
d	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	1 January 2027

Note: On 25 September 2025, the FSC announced in a press release that Taiwan will adopt IFRS 18 in 2028.

(a) IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors' interests in the associate or joint venture.

(b) IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as below:

(1) Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

(2) Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

(3) Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

This new standard and its amendments permit subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

(d) Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)

The amendments include:

(1) Clarify that when the entity’s functional currency is that of a non-hyperinflationary economy but its presentation currency is the currency of a hyperinflationary economy, the entity shall translate its results and financial position using the closing rate at the date of the most recent statement of financial position.

(2) In the above circumstances, when the presentation currency ceases to be hyperinflationary economy, the entity shall not retranslate amounts that arose before the beginning of the reporting period

(3) When the entity's functional currency and presentation currency are the currency of a hyperinflationary economy, the entity shall apply the relevant accounting treatment in accordance with paragraph 34 of IAS 29.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company's financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the new or amended standards and interpretations listed under (b), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company

4. Summary of Material Accounting Policies

(1) Statement of compliance

The parent-company-only financial statements of the Company for the years ended December 31, 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers ("the Regulations").

(2) Basis of preparation

The Company prepared parent-company-only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent-company-only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent-company-only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using the equity method and, accordingly, made necessary adjustments.

The parent-company-only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent-company-only financial statements are expressed in thousands of New Taiwan Dollars ("NT$") unless otherwise stated.

(3) Foreign currency transactions

The Company’s parent-company-only financial statements are presented in NT$, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company at the functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

B. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

C. Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following partial disposals are accounted for as disposals:

A. when the partial disposal involves the loss of control of a subsidiary that includes a foreign operation; and

B. when the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(5) Current and non-current distinction

An asset is classified as current when:

A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle

B. The Company holds the asset primarily for the purpose of trading

C. The Company expects to realize the asset within twelve months after the reporting period

D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

A. The Company expects to settle the liability in its normal operating cycle

B. The Company holds the liability primarily for the purpose of trading

C. The liability is due to be settled within twelve months after the reporting period

D. The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

(6) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(7) Financial instruments

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

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

A. Financial instruments: recognition and measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

(a) the Company's business model for managing the financial assets and
(b) the contractual cash flow characteristics of the financial asset.

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as notes receivable, accounts receivable, financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial assets at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described below:

(a) A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

(b) When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

(c) Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

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

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

In addition, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its accumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represent a recovery of part of the cost of investment.

Financial assets at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

B. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Company measures expected credit losses of a financial instrument in a way that reflects:

(a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

(b) the time value of money;

(c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measured as follows:

(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

(c) For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

(d) For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

C. Derecognition of financial assets

A financial asset is derecognized when:

(a) The rights to receive cash flows from the asset have expired.

(b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred.

(c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

D. Financial liabilities and equity

Classification between liabilities or equity

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

Equity Instruments

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

Financial Liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

E. Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(8) Derivative instrument

The Company uses derivative instruments to hedge its foreign currency risks and interest rate risks. A derivative is classified in the balance sheet as financial assets or liabilities at fair value through profit or loss except for derivatives that are designated as and effective hedging instruments which are classified as financial assets or liabilities for hedging.

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The changes in fair value of derivatives are taken directly to profit or loss, except for the effective portion of hedges, which is recognized in either profit or loss or equity according to types of hedges used.

When the host contracts are either non-financial assets or liabilities, derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not designated at fair value though profit or loss.

(9) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

A. In the principal market for the asset or liability, or
B. In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(10) Inventories

Inventories are valued at lower of cost and net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

Raw materials - Purchase cost on a weighted-average method

Finished goods and work in progress - Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(11) Investments accounted for using the equity method

The Company’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence.

Under the equity method, the investment in the associate is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate. After the interest in the associate is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the Company’s related interest in the associate.

When changes in the net assets of an associate occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Company’s percentage of ownership interests in the associate, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate on a pro rata basis.

When the associate issues new stock, and the Company’s interest in an associate is reduced or increased as the Company fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognized in capital surplus and investment accounted for using the equity method. When the interest in the associate is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Company disposes the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

A. Its share of the present value of the estimated future cash flows expected to be generated by the associate, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or

B. The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss.

(12) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria is met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings	2-50 years
Machinery and equipment	1-10 years
Transportation equipment	3-5 years
Office equipment	2-8 years
Other equipment	1-6.7 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(13) Investment property

The Company's owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as right-of-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings
25 years

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

The Company transfers to or from investment properties when there is a change in use for these assets.

Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

(14) Leases

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

A. the right to obtain substantially all of the economic benefits from use of the identified asset; and
B. the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price charged by the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximizing the use of observable information.

The Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;
B. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
C. amounts expected to be payable by the lessee under residual value guarantees;
D. the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortized cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

A. the amount of the initial measurement of the lease liability;
B. any lease payments made at or before the commencement date, less any lease incentives received;

C. any initial direct costs incurred by the lessee;

D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of low-value assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statement of comprehensive income.

For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

The Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(15) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's ("CGU") fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset's or cash-generating unit's recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(16) Revenue recognition

The Company's revenue arising from contracts with customers are primarily related to sale of goods and rendering of services. The accounting policies are explained as follows:

Sale of goods

The Company manufactures and sells goods. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers. The main products of the Company are pre-recorded optical discs and revenue is recognized based on the consideration stated in the contract.

The credit period of the Company's sale of goods is 30-150 day terms. For most of the contracts, when the Company transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as accounts receivable. The Company usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. For some of the contracts, the Company has transferred the goods to customers but does not have a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. Besides, in accordance with IFRS 9, the Company measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses.

The period between the transfers of contract liabilities to revenue is usually within one year, thus, no significant financing component arose.

(17) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(18) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee's name in the specific bank account and hence, not associated with the Company, therefore, fund assets are not included in the Company's financial statements.

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

A. the date of the plan amendment or curtailment, and
B. the date that the Company recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(19) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the shareholders' meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

i. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.

ii. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

i. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.

ii. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12), information about deferred tax assets and liabilities related to Pillar Two income tax will neither be recognized nor be disclosed.

5. Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Company's parent-company-only financial statements require management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgment

De facto control without a majority of the voting rights in the investee company

The Company is the largest shareholder of certain investee with less than 50% shareholdings. The Company has no de facto control but only significant influence on certain investee after judgement. Please refer to Note 6.(7) for more details.

(2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

A. Fair value of financial instruments categorized within Level 3

Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including the income approach (for example the discounted cash flows model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

B. Trade receivables - estimate of impairment loss

The Company estimates the impairment loss of trade receivables at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that expects to receive (evaluate forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Where the actual future cash flows are lower than expected, a material impairment loss may arise. Please refer to Note 6 for more details.

Contents of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$285	$303
Demand deposits	298,216	155,922
Time deposits	78,510	151,063
Total	$377,011	$307,288

(2) Financial assets at fair value through profit or loss

	December 31, 2025	December 31, 2024
Mandatorily measured at fair value through profit or loss:
Stocks	$3,100	$-
Funds	-	63,440
Total	$3,100	$63,440
Current	$3,100	$63,440
Non-current	-	-
Total	$3,100	$63,440

None of the abovementioned financial assets at fair value through profit or loss was pledged as collateral.

(3) Financial assets at fair value through other comprehensive income

	December 31, 2025	December 31, 2024
Equity instrument investments measured at fair value through other comprehensive income:
Listed company stocks	$29,122	$3,164
Unlisted company stocks	16,401	22,831
Total	$45,523	$25,995
Current	$-	$-
Non-current	45,523	25,995
Total	$45,523	$25,995

The Company classified certain of its financial assets as financial assets at fair value through other comprehensive income. None of the abovementioned financial assets was pledged as collateral.

The Company's dividend income related to equity instrument investments measured at fair value through other comprehensive income were not recognized for the years ended December 31, 2025 and 2024.

	2025	2024
Dividends recognized during the period	$382	$79

(4) Notes receivable

	December 31, 2025	December 31, 2024
Notes receivable arising from operating activities (total carrying amount)	$381	$807
Less: loss allowance	-	-
Total	$381	$807

None of the abovementioned notes receivable was pledged as collateral.

Please refer to Note 6.(15) for more details on the Company's assessment of impairment and loss allowance information in accordance with IFRS 9 and Note 12 for more details on credit risk management.

(5) Accounts receivable and accounts receivable - related parties

	December 31, 2025	December 31, 2024
Accounts receivable (total carrying amount)	$55,316	$69,815
Less: loss allowance	(49)	(49)
Subtotal	55,267	69,766
Accounts receivable from related parties (total carrying amount)	201	147
Less: loss allowance	-	-
Subtotal	201	147
Total	$55,468	$69,913

(6) Inventories

	December 31, 2025	December 31, 2024
Raw materials	$31,222	$32,475
Work in progress	1,935	1,944
Finished goods	5,578	7,032
Merchandises	-	110
Total	$38,735	$41,561

The Company's cost of inventories recognized as expense for the years ended December 31, 2025 and 2024 were $280,348 thousand and $335,357 thousand, respectively, including gain from price recovery of inventories in the amount of $274 thousand and $0 thousand, respectively.

The abovementioned gain from price recovery of inventories is due to the fact that some of the inventory whose valuation declined has been scrapped.

None of the abovementioned inventories was pledged as collateral.

(7) Investments accounted for using the equity method

The investments accounted for using the equity method are as follows:

Investees	December 31, 2025		December 31, 2024
	Carrying amount	Percentage of ownership (%)	Carrying amount	Percentage of ownership (%)
Investments in subsidiaries:
Dollars Cultural & Creative Company Limited	$123,809	100.00	$186,350	100.00
Jade Investment Services Ltd.	342,732	100.00	344,920	100.00
Chao Fu Co., Ltd.	2,316	100.00	2,015	100.00
Formosa Sun Energy Corporation	891,294	70.82	829,400	70.82
Ricare Corporation	739,603	92.34	547,956	89.91
Subtotal	2,099,754		1,910,641
Investments in associates:
Unlisted companies:
ProRit Corporation	7,101	0.63	7,352	0.63
Listed company:
RiTdisplay Corporation	131,200	4.70	140,390	5.50
Subtotal	138,301		147,742
Total	$2,238,055		$2,058,383

On April 11, 2024, Dollars Cultural & Creative Company Limited's board of directors resolved to cover deficit through the capital reduction by eliminating 7,429 thousand shares. Additionally, a capital injection was conducted with the number of shares being 19,000 thousand and the amount being $190,000 thousand.

The Company held 30.77% of the voting rights of Ricare Corporation before January 31, 2024, which only constituted significant influence. After January 31, 2024, the Company issued 9,000 thousand common shares and $25,000 thousand in cash, in exchange of 6,500 shares held by the shareholders of Ricare Corporation. As a result, the Company held a total of 80.77% of the equity, thereby obtain the substantial control over Ricare Corporation and its subsidiaries.

On January 29, 2024, Ricare Corporation's board of directors resolved to conduct the capital injection with the number of shares being 8,125 thousand and the amount being $200,000 thousand. The Company purchased all of the new shares, thus increasing the Company's shareholding ratio to 88.17%.

On April 24, 2024, Ricare Corporation's board of directors resolved to conduct the capital injection with the number of shares being 3,656 thousand and the amount being $89,994 thousand. The Company purchased all of the new shares, thus increasing the Company's shareholding ratio to 89.91%.

On March 8, 2024, Ricare Corporation’s board of directors resolved to distribute stock dividends with the number of shares being 845 thousand. The Company received stock dividends according to its shareholding ratio.

On May 7, 2025, Ricare Corporation’s board of directors resolved to conduct the capital injection with the number of shares being 8,125 thousand and the amount being $200,000 thousand. The Company purchased all of the new shares, thus increasing the Company’s shareholding ratio to 92.34%.

On July 7, 2025, the board of directors of Ricare Corporation resolved to reinvest dividends through the issuance of 1,025 thousand shares, the Company received the stock dividends in proportion to its shareholding ratio.

On February 29, 2024, RiTdisplay Corporation’s board of directors resolved to issue 17,000 thousand new shares. The Company did not participate in the capital increase, thus reducing the Company’s shareholding ratio to 5.50%.

On July 22, 2025, RiTdisplay Corporation’s board of directors resolved to issue 12,500 thousand new shares. The Company did not participate in the capital increase, thus reducing the Company’s shareholding ratio to 4.83%.

During December 2025, the Company disposed of 150 thousand shares of RiTdisplay Corporation, thereby reducing its shareholding ratio to 4.70%.

A. Investment in subsidiaries

These investments were expressed as “Investments accounted for using the equity method” in the parent-company-only financial report with necessary evaluation and adjustment made.

B. Investments in associates

The Company's investments in affiliated companies are not material to the Company. The aggregate carrying amounts of the Company's investments in affiliated companies as of December 31, 2025 and 2024 were $138,301 thousand and $147,742 thousand, respectively, and the aggregated financial information based on the Company's share is presented below:

	2025	2024
Profit (loss) from continuing operations	$(2,467)	$980
Other comprehensive income (post-tax)	(1,362)	(302)
Total comprehensive income	$(3,829)	$678

The associates had no contingent liabilities or capital commitments as at December 31, 2025 and 2024.

(8) Property, plant and equipment

Owner occupied property, plant and equipment	December 31, 2025	December 31, 2024
					$685,914	$695,701
	Land	Buildings	Machinery and equipment	Office equipment	Transportation equipment	Other equipment
Cost:
January 1, 2025	$521,754	$901,821	$932,346	$17,889	$12,944	$4,086
Additions	-	422	374	225	-	-
Disposals	-	-	(90,894)	(320)	-	-
Transfers	-	-	-	-	-	-
December 31, 2025	$521,754	$902,243	$841,826	$17,794	$12,944	$4,086
January 1, 2024	$521,754	$901,998	$1,093,467	$17,055	$12,944	$4,086
Additions	-	108	3,137	1,023	-	4,455
Disposals	-	(285)	(168,713)	(189)	-	-
Transfers	-	-	4,455	-	-	(4,455)
December 31, 2024	$521,754	$901,821	$932,346	$17,889	$12,944	$4,086
Depreciation and impairment:
January 1, 2025	$-	$738,023	$924,839	$16,264	$11,986	$4,027
Depreciation	-	7,075	2,289	905	500	39
Disposals	-	-	(90,894)	(320)	-	-
December 31, 2025	$-	$745,098	$836,234	$16,849	$12,486	$4,066
January 1, 2024	$-	$731,160	$1,091,682	$15,631	$11,486	$3,985
Depreciation	-	7,148	1,870	822	500	42
Disposals	-	(285)	(168,713)	(189)	-	-
December 31, 2024	$-	$738,023	$924,839	$16,264	$11,986	$4,027
Net carrying amount as at:
December 31, 2025	$521,754	$157,145	$5,592	$945	$458	$20
December 31, 2024	$521,754	$163,798	$7,507	$1,625	$958	$59

Please refer to Note 8 for the property, plant and equipment under pledge.

(9) Investment property

The Company's investment properties includes both owned investment properties and investment properties held by the Company as right-of-use assets. The Company has entered into commercial property leases on its owned investment properties with terms range from 1 to 2 years. These leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

	Land	Buildings	Total
Cost:
January 1, 2025	$110,110	$51,783	$161,893
Additions from acquisitions	-	-	-
Additions from subsequent expenditure	-	-	-
Disposals	-	-	-
December 31, 2025	$110,110	$51,783	$161,893
January 1, 2024	$110,110	$51,783	$161,893
Additions from acquisitions	-	-	-
Additions from subsequent expenditure	-	-	-
Disposals	-	-	-
December 31, 2024	$110,110	$51,783	$161,893
Depreciation and impairment:
January 1, 2025	$-	$19,850	$19,850
Depreciation	-	2,071	2,071
Disposals	-	-	-
December 31, 2025	$-	$21,921	$21,921
January 1, 2024	$-	$17,778	$17,778
Depreciation	-	2,072	2,072
Disposals	-	-	-
December 31, 2024	$-	$19,850	$19,850
Net carrying amount as at:
December 31, 2025	$110,110	$29,862	$139,972
December 31, 2024	$110,110	$31,933	$142,043

	2025	2024
Rental income from investment property	$3,945	$3,657
Less:
Direct operating expenses from investment property generating rental income	(2,071)	(2,072)
Direct operating expenses from investment property not generating rental income	-	-
Total	$1,874	$1,585

None of the abovementioned investment property was pledged.

The Company's investment properties are not measured at fair value for which the fair value is disclosed, instead. The fair value measurements of the investment properties are categorized within Level 3. The fair value of investment properties were $171,883 thousand and $171,760 thousand as at December 31, 2025 and 2024, the aforementioned fair values were determined based on actual transaction prices in the most recent year and market transaction prices of comparable properties in proximate areas

For those right-of-use assets leased by operating leases and presented in investment properties, please refer to Note 6.(16) for relevant disclosure which required by IFRS 16.

(10) Short-term borrowings

	December 31, 2025	December 31, 2024
Secured bank loans	$99,000	$120,000
Interest rate interval (%)	1.975~2.378	1.878~2.376

The Company's unused short-term lines of credits amounted to $348,240 thousand and $297,755 thousand as at December 31, 2025 and 2024, respectively.

Please refer to Note 8 for more details on property, plant and equipment pledged as security for short-term borrowings.

(11) Long-term borrowings

	December 31, 2025	December 31, 2024
Financial institutions borrowings- Syndicated bank loans	$980,000	$-
Financial institutions borrowings- General	-	671,500
Total	980,000	671,500
Less: arrangement fee	(4,184)	-
Less: current portion	(128,000)	(143,500)
Net	$847,816	$528,000
Interest rate interval (%)	2.310-2.468	1.978-2.374

(a) In September 2025, the Company entered into a secured loan facility and commitment agreement with a syndicate of banks led by Taiwan Cooperative Bank in the amount of $1,600,000 thousand. The main commitments under the above syndicated credit facility are that the annual consolidated financial statements shall not have (1) a current ratio lower than 130%, (2) a net debt-to-equity ratio greater than 150%, (3) an interest coverage ratio lower than 3 times, and (4) total equity less than $2.2 billion.

(b) In July 2025, the Company entered into a line of credit and commitment agreement with O Bank in the amount of $150,000 thousand. The main commitments under the above credit facility are that the annual and semi-annual consolidated financial statements shall not have (1) net tangible value less than $2.2 billion and (2) financial liabilities/net tangible worth greater than 100%

(c) In March 2025, the Company entered into a credit line and commitment agreement with Far Eastern International Bank in the amount of $100,000 thousand. The main commitments under the above credit facility are that the semi-annual consolidated financial statements shall not have (1) the current ratio lower than 120% and (2) the debt ratio more than 150%.

(d) The Company's borrowings are repayable by instalments from 2025 to 2030.

(e) Please refer to Note 8 for more details on long-term borrowings.

(12) Post-employment benefits

Defined contribution plan

The defined contribution plan adopted by the Company is in accordance with the "Labor Standards Act of the R.O.C." According to the Labor Pension Act, the Company will make monthly contributions of no less than 6% of the employees' monthly salaries. The Company appropriate 6% of their employees' salaries to the personal pension accounts at the Labor Insurance Bureau each month in accordance with the Labor Pension Act.

Pension expenses under the defined contribution plan for the years ended December 31, 2025 and 2024 were $5,710 thousand and $5,849 thousand, respectively.

Defined benefits plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 2% of the employees' total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company assesses the balance in the designated labor pension fund. If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company will make up the difference in one appropriation before the end of March the following year.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandatory, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With the regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute $9,317 thousand to its defined benefit plan during the 12 months beginning after December 31, 2025.

The average duration of the defined benefits plan obligation as at December 31, 2025 and 2024 were 1 years and 3 years, respectively.

Pension costs recognized in profit or loss for the years ended December 31, 2025 and 2024:

	2025	2024
Current service cost	$-	$-
Net interest on the net defined benefit liabilities (assets)	300	298
Total	$300	$298

The reconciliation to the present value of defined benefit obligation and the fair value of planned assets are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$57,358	$56,029
Fair value of plan assets	(47,654)	(35,879)
Other non-current liabilities - Net defined benefit liabilities	$9,704	$20,150

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Reconciliation to the net defined benefit liabilities (assets):

	Defined benefit obligation	Fair value of plan assets	Net defined benefit liabilities (assets)
January 1, 2024	$57,332	$(32,509)	$24,823
Current service cost	-	-	-
Net interest expense (income)	688	(390)	298
Subtotal	58,020	(32,899)	25,121
Remeasurements of the net defined benefit liabilities (assets):
Actuarial gain or loss arising from change in demographic assumptions	-	-	-
Actuarial gain or loss arising from change in financial assumptions	(570)	-	(570)
Experience adjustments	(345)	-	(345)
Remeasurements of the defined benefit assets	-	(2,869)	(2,869)
Subtotal	(915)	(2,869)	(3,784)
Payments from the plan	(1,076)	1,076	-
Contributions by employer	-	(1,187)	(1,187)
December 31, 2024	56,029	(35,879)	20,150
Current service cost	-	-	-
Net interest expense (income)	834	(534)	300
Subtotal	56,863	(36,413)	20,450
Remeasurements of the net defined benefit liabilities (assets):
Actuarial gain or loss arising from change in demographic assumptions	-	-	-
Actuarial gain or loss arising from change in financial assumptions	200	-	200
Experience adjustments	888	-	888
Remeasurements of the defined benefit assets	-	(2,517)	(2,517)
Subtotal	1,088	(2,517)	(1,429)
Payments from the plan	(593)	593	-
Contributions by employer	-	(9,317)	(9,317)
December 31, 2025	$57,358	$(47,654)	$9,704

The following main assumptions are used to determine the defined benefit plan of the Company:

	December 31, 2025	December 31, 2024
Discount rate	1.22%	1.49%
Expected rate of salary increases	1.00%	1.00%

Sensitivity analysis of each significant actuarial assumption:

	2025		2024
	Increase defined benefit obligation	Decrease defined benefit obligation	Increase defined benefit obligation	Decrease defined benefit obligation
Discount rate increased by 0.5%	$-	$(363)	$-	$(920)
Discount rate decreased by 0.5%	394	-	1,001	-
Expected salary increased by 0.5%	393	-	1,001	-
Expected salary decreased by 0.5%	-	(365)	-	(929)

The sensitivity analysis above is to analyze the possible effect on the benefit obligations under the assumption that a single actuarial assumption (such as discount rate or expected salary) reasonably changes while other assumptions remain unchanged. Because some actuarial assumptions are related to each other, in practice there are few circumstances where only one single actuarial assumption changes, so this analysis has its limitations.

The method and assumption used in this sensitivity analysis are not different from those in the previous period.

(13) Equity

A. Common stock

As of December 31, 2025 and 2024, the Company's authorized capital were both $3,700,000 thousand, and issued capital were both $1,549,845 thousand, divided into 154,984 thousand shares, with par value of $10 for each share. Each share is entitled to one voting right and the right to receive dividends.

B. Capital surplus

	December 31, 2025	December 31, 2024
Additional paid-in capital	$196,652	$196,652
Treasury share transactions	329,746	329,746
Share of changes in net assets of associates and joint ventures accounted for using the equity method	55,208	57,417
Difference between consideration given/received and carrying amounts of interests in subsidiaries	1,744	1,997
Other - unclaimed dividends	2,365	2,330
Total	$585,715	$588,142

According to the Company Act, the capital reserve shall not be used except for offsetting prior years' operating losses of the company. When a company incurs no losses, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Retained earnings and dividend policies

According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

(a) Payment of all taxes and dues;
(b) Offset prior years' operation losses;
(c) Set aside 10% of the remaining amount after deducting items (a) and (b) as legal reserve, unless such reserve has reached the paid-in capital of the company;
(d) Set aside or reverse special reserve in accordance with law and regulations; and
(e) The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders' meeting.

According to the Company's Articles of Incorporation, the industry environment in which the Company operates is changing rapidly. Considering the Company's future capital needs, long-term financial planning and the growth of the Company's earnings, when dividends are distributed to shareholders, they are based on the above retained earnings with cash dividends distributed at 10% to 100% of the total dividends and stock dividends distributed at 0% to 90% of the total dividends.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total paid-in capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

According to existing regulations, when the Company distributes earnings, it shall set aside special reserve, an amount equal to "other net deductions from shareholders" equity for the current fiscal year. For any subsequent reversal of other net deductions from shareholders' equity, the amount reversed may be distributed from the special reserve.

The FSC on March 31, 2021 issued Order No. Jin-Guan-Cheng-Fa-Zi-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders' equity that the Company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent uses, disposal or reclassification of related assets, the Company may reverse the special reserve in proportion to the special reserve set aside.

The Company did not incur any special reserve upon the first-time adoption of IFRSs.

Details of the 2025 and 2024 earnings distribution and dividends per share as approved and resolved by the board meeting and shareholders' meeting on March 6, 2026 and June 17, 2025, respectively, were as follows:

	Appropriation of earnings		Dividend per share (NT$)
	2025	2024	2025	2024
Legal reserve	$851	$8,606
Special reserve	10,350	8,870
Common stock - cash dividends	38,746	77,492	$0.25	$0.50

Note: As stipulated in the Articles of Incorporation, a special resolution was passed at a Board of Directors meeting held on March 11, 2025, to distribute the 2024 common stock dividend in cash amounted to $77,492 thousand, which was included in shareholders' meeting.

Please refer to Note 6.(17) for details on employees' compensation and remuneration to directors and supervisors.

(14) Operating revenue

	2025	2024
Revenue from contracts with customers
Sale of goods	$367,048	$449,789

Analysis of revenue from contracts with customers for the years ended December 31, 2025 and 2024 were as follows:

A. Disaggregation of revenue

	2025	2024
	Single department	Single department
Sale of goods	$367,048	$449,789

Timing of revenue recognition: At a point in time

B. Contract balances

Contract liabilities – current

	December 31, 2025	December 31, 2024	January 1, 2024
Sales of goods	$944	$836	$500

The significant changes in the Company's balances of contract liabilities for the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
The opening balance transferred to revenue	$(60)	$(453)
Increase in receipts in advance during the period (excluding the amount incurred and transferred to revenue during the period)	168	789

C. Assets recognized from costs to fulfil a contract

None.

(15) Expected credit losses

	2025	2024
Operating expenses - expected credit losses
Notes receivable	$-	$-
Accounts receivable	-	-
Total	$-	$-

Please refer to Note 12 for more details on credit risk management.

The Company measures the loss allowance of its receivables (including notes receivable and accounts receivable) at an amount equal to lifetime expected credit losses. The Company considers the grouping of trade receivables by the counterparties' geographical region, credit rating and industry sector and its loss allowance is measured by using a provision matrix. The assessment of the Company's loss allowance is as follows:

December 31, 2025

	Not yet due (note)	Overdue					Total
		<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
Gross carrying amount	$55,517	$-	$-	$-	$-	$-	$55,517
Loss rate (%)	-	1	2	5	10	20-100
Lifetime expected credit losses	(49)	-	-	-	-	-	(49)
Carrying amount	$55,468	$-	$-	$-	$-	$-	$55,468

December 31, 2024

	Not yet due (note)	Overdue					Total
		<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
Gross carrying amount	$69,962	$-	$-	$-	$-	$-	$69,962
Loss rate (%)	-	1	2	5	10	20-100
Lifetime expected credit losses	(49)	-	-	-	-	-	(49)
Carrying amount	$69,913	$-	$-	$-	$-	$-	$69,913

Note: The Company's notes receivable were not overdue.

The movement in the provision for impairment of notes receivable and accounts receivable for the years ended December 31, 2025 and 2024 were as follows:

	Notes receivable	Accounts receivable
January 1, 2025	$-	$49
Addition/(reversed) for the current period	-	-
Write-off	-	-
December 31, 2025	$-	$49
January 1, 2024	$-	$49
Addition/(reversed) for the current period	-	-
Write-off	-	-
December 31, 2024	$-	$49

(16) Leases

A. The Company as a lessee

The Company leases various properties, including real estate such as buildings and other equipment. The lease terms range from 1 to 2 years.

The Company's leases effect on the financial position, financial performance and cash flows are as follows:

(a) Amounts recognized in the balance sheet

i. Right-of-use assets

The carrying amount of right-of-use assets

	December 31, 2025	December 31, 2024
Land	$-	$-

(b) Profit and losses relating to leasing activities

	2025	2024
The expenses relating to short-term leases	$(446)	$(838)
Income from subleasing right-of-use assets	-	-

As at December 31, 2025 and 2024, the portfolio of short-term leases committed at the end of the reporting period was similar to the lease expenses of short-term leases disclosed above.

For the years ended December 31, 2025 and 2024, the Company's total cash outflows for leases amounted to $446 thousand and $838 thousand, respectively.

B. The Company as a lessor

Please refer to Note 6.(9) for details on the Company’s owned and subleased investment properties. Leases of owned investment properties are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

	2025	2024
Lease income for operating leases
Income relating to fixed lease payments and variable lease payments that depend on an index or a rate	$25,422	$21,808

For operating leases entered by the Company, the undiscounted lease payments to be received and a total of the amounts for the remaining years as at December 31, 2025 and 2024 were as follows:

	December 31, 2025	December 31, 2024
Not later than one year	$26,420	$9,487
Later than one year but not later than two years	23,398	3,311
Later than two years but not later than three years	4,935	3,154
Later than three years but not later than four years	900	931
Later than four years but not later than five years	612	864
Later than five years	1,377	1,973
Total	$57,642	$19,720

(17) Summary statement of employee benefits, depreciation and amortization expenses by function during the years ended December 31, 2025 and 2024:

	2025				2024
	Operating costs	Operating expenses	Non-operating expenses	Total amount	Operating costs	Operating expenses	Non-operating expenses	Total amount
Employee benefits expense
Salaries	$79,463	$39,299	$-	$118,762	$85,980	$40,412	$-	$126,392
Labor and health insurance	9,674	3,869	-	13,543	10,012	3,793	-	13,805
Pension	4,028	1,983	-	6,011	4,111	2,036	-	6,147
Remuneration to directors	-	645	-	645	-	3,327	-	3,327
Other employee benefits expense	6,277	2,219	-	8,496	5,704	1,768	-	7,472
Depreciation	6,480	2,682	3,717	12,879	6,219	2,416	3,819	12,454

According to the Company's Articles of Incorporation, when there is profit in current year, the Company shall set 3% to 10% of the profit as employees' compensation, of which not less than 1.5% shall be allocated to salary adjustments or compensation distributions for non-executive employees. which shall be distributed in shares or cash by the board resolution to employees who meet certain criteria. The Company may set aside no more than 5% of the profit as remuneration to directors and supervisors by resolution. The employees' compensation and remuneration to directors and supervisors should be reported to the shareholders' meeting. However, profit should be used to offset any accumulated deficit prior to the aforementioned compensation and remuneration. Information on the board's resolution regarding the employees' compensation and remuneration to directors and supervisors can be obtained from the "Market Observation Post System" on the website of the TWSE.

For the year ended December 31, 2025, based on the Company's profitability, the employees' compensation and remuneration to directors and supervisors were estimated at 3% and 3%, respectively, and the employees' compensation and remuneration to directors and supervisors amounted to both $198 thousand, which were recognized as employee benefits expense. If the Board of Directors resolves to distribute employees' compensation in shares, the closing price on the day before the date of the Board's resolution is used as the basis for calculating the number of shares to be distributed. On March 6, 2026 the Board of Directors resolved to distribute employees' compensation and remuneration to directors and supervisors for the year ended December 31, 2025 both in the amount of $198 thousand in cash, which were not materially different from the amount recorded as expenses in the financial statements for the year ended December 31, 2025.

On March 11, 2025, the Board of Directors resolved to pay employees' compensation and remuneration to directors and supervisors both in the amount of $2,720 thousand in cash, respectively, which were not materially different from the amounts recorded as expenses in the financial statements for the year ended December 31, 2024.

Please refer to Details of Significant Accounts (23). Summary Statement of Employee Benefits, Depreciation and Amortization Expenses by function for the Current Period for the Company's supervisors' remuneration and salary compensation policy.

(18) Non-operating income and expenses

A. Interest income

Financial assets measured at amortized cost

2025	2024
$3,380	$4,700

B. Other income

Rental income

Dividend income

Others

Total

2025	2024
$25,422	$21,808
434	79
5,691	4,204
$31,547	$26,091

C. Other gains and losses

	2025	2024
Disposition of investment interests	$2,124	$54,355
Foreign exchange losses (gains), net	(2,393)	2,392
Impairment loss – goodwill	-	(6,098)
Gains (losses) on financial assets at fair value through profit or loss (note)	4,130	2,111
Others	(5,026)	(3,836)
Total	$(1,165)	$48,924

Note: The balances arose from financial assets mandatorily measured at fair value through profit or loss.

D. Finance costs

	2025	2024
Interest on bank borrowings	$19,688	$14,849

(19) Components of other comprehensive income (loss)

For the year ended December 31, 2025

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax relating to components of other comprehensive income (expense)	Other comprehensive income (loss), net of tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	$1,429	$-	$1,429	$-	$1,429
Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income	(1,270)	-	(1,270)	-	(1,270)
Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method	9,686	-	9,686	-	9,686
To be reclassified to profit or loss in subsequent periods:
Exchange differences resulting from translating the financial statements of foreign operations	(22,686)	-	(22,686)	4,537	(18,149)
Total	$(12,841)	$-	$(12,841)	$4,537	$(8,304)

For the year ended December 31, 2024

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax relating to components of other comprehensive income (expense)	Other comprehensive income (loss), net of tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	$3,784	$-	$3,784	$-	$3,784
Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income	1,232	-	1,232	-	1,232
Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method	(4,297)	-	(4,297)	-	(4,297)
To be reclassified to profit or loss in subsequent periods:
Exchange differences resulting from translating the financial statements of foreign operations	(7,397)	-	(7,397)	1,479	(5,918)
Total	$(6,678)	$-	$(6,678)	$1,479	$(5,199)

(20) Income tax

The major components of income tax expense for the years ended December 31, 2025 and 2024 are as follows:

Income tax expense recognized in profit or loss

	2025	2024
Current income tax expense (income):
Current income tax charge	$-	$-
Adjustments in respect of current income tax of prior periods	-	(601)
Deferred tax expense:
Deferred tax expense relating to origination and reversal of temporary differences	(416)	978
Total income tax expense (income)	$(416)	$377

Income tax related to components of other comprehensive income (loss)

	2025	2024
Deferred tax income:
Exchange differences resulting from translating the financial statements of foreign operations	$(4,537)	$(1,479)
Income tax related to components of other comprehensive income loss	$(4,537)	$(1,479)

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

The amount of income tax expense and accounting profit multiplied by the applicable income tax rate are adjusted as follows:

	2025	2024
Net profit before tax	$6,206	$85,216
Income tax payable at the statutory rate applied to the Company	$1,241	$17,043
Tax effect of tax-exempted income	(970)	(6,289)
Tax effect of non-deductible expenses for tax purposes	646	(393)
Tax effect of deferred tax assets/liabilities	(1,333)	(9,383)
Profit-seeking enterprise income surtax on undistributed retained earnings	-	-
Adjustment in respect of current income tax of prior periods	-	(601)
Total income tax expenses recognized in profit or loss	$(416)	$377

Balance of deferred income tax assets (liabilities) related to:

For the year ended December 31, 2025

	Opening balance	Recognized in profit or loss	Recognized in other comprehensive income (loss)	Ending balance
Temporary differences
Loss allowance for inventory valuation and obsolescence	$693	$(54)	$-	$639
Loss allowance for office supplies valuation and obsolescence	1,076	(2)	-	1,074
Exchange differences resulting from translating the financial statements of foreign operations	17,626	-	4,537	22,163
Unrealized foreign exchange gains or losses	(505)	472	-	(33)
Gain recognized in bargain purchase	(3,276)	-	-	(3,276)
Deferred tax expenses (income)		$416	$4,537
Net deferred income tax assets (liabilities)	$15,614			$20,567
The information presented on the balance sheet is as follows:
Deferred tax assets	$19,394			$23,876
Deferred tax liabilities	$(3,780)			$(3,309)

For the year ended December 31, 2024

	Opening balance	Recognized in profit or loss	Recognized in other comprehensive income (loss)	Ending balance
Temporary differences
Loss allowance for inventory valuation and obsolescence	$693	$-	$-	$693
Loss allowance for office supplies valuation and obsolescence	1,076	-	-	1,076
Exchange differences resulting from translating the financial statements of foreign operations	16,147	-	1,479	17,626
Unrealized foreign exchange gains or losses	473	(978)	-	(505)
Gain recognized in bargain purchase	(3,276)	-	-	(3,276)
Deferred tax expenses (income)		$(978)	$1,479
Net deferred income tax assets (liabilities)	$15,113			$15,614
The information presented on the balance sheet is as follows:
Deferred tax assets	$18,389			$19,394
Deferred tax liabilities	$(3,276)			$(3,780)

The following table contains information of the unused tax losses of the Company:

Year	Tax losses for the period	Unused tax losses as at		Expiration year
		December 31, 2025	December 31, 2024
2018	$389,149	$334,912	$334,912	2028
Total		$334,912	$334,912

Unrecognized deferred tax assets

As of December 31, 2025 and 2024, the Company's unrecognized deferred tax assets totaled $100,199 thousand and $101,532 thousand, respectively.

The assessment of income tax returns

As of December 31, 2025, the assessment of the income tax returns of the Company was assessed and approved up to the year of 2023.

(21) Earnings per share

Basic earnings per share are calculated by dividing net profit for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share are calculated by dividing the net profit attributable to ordinary equity holders of the Company (after adjusting for interest on convertible bonds) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

	2025	2024
A. Basic earnings per share
Profit attributable to ordinary equity holders of the Company (in thousands)	$6,622	$84,839
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	154,984	154,222
Basic earnings per share (in NT$)	$0.04	$0.55
	2025	2024
B. Diluted earnings per share
Profit attributable to ordinary equity holders of the Company (in thousands)	$6,622	$84,839
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	154,984	154,222
Effect of dilution:
Employees’ compensation - stock (in thousands)	45	287
Weighted average number of ordinary shares outstanding after dilution (in thousands)	155,029	154,509
Diluted earnings per share (in NT$)	$0.04	$0.55

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of the financial statements.

(22) Business combinations

Acquisition of Ricare Corporation

On 1 February 2024, the Company conducted a capital increase with 9,000 thousand common shares issued and $25,000 thousand in cash, in exchange of 6,500 shares held by the shareholders of Ricare Corporation, with the shareholding ratio being 80.77%. Ricare Corporation is based in Taiwan, specializing in the long-term care planning and related consulting services. The Company has acquired Ricare Corporation due to expanding the diversity of the Group.

The Company has elected to measure the non-controlling interest with fair value of identified net assets.

The fair value of the identifiable assets and liabilities of Ricare Corporation as at the date of acquisition were:

	Fair value recognized on the acquisition date
Assets
Cash and cash equivalents	$69,696
Accounts receivables	32,745
Prepayments	1,260
Other current assets	1,824
Financial assets at fair value through other comprehensive income - non-current	2,216
Property, plant and equipment	7,367
Right-of-use assets	41,046
Intangible assets	52,222
Other non-current assets	8,785
Subtotal	217,161
Liabilities
Contract liabilities - current	196
Other payables	16,267
Current tax liabilities	3,448
Lease liabilities	43,706
Other current liabilities	9,079
Deferred tax liabilities	9,780
Other non-current liabilities	991
Subtotal	83,467
Identifiable net assets	$133,694
Goodwill of Ricare Corporation is as follows:
Purchase consideration	$160,000
Add: shares held at fair value	98,462
Add: non-controlling interests at fair value	25,709
Less: identifiable net assets at fair value	(133,694)
Goodwill	$150,477

The goodwill comprises the value of expected synergies arising from the acquisition, revenue growth, future market development, and employee value. However, these benefits do not meet the criteria for recognition as intangible assets, and therefore are not recognized individually.

Cash flow analysis for acquisition:

Cash transaction cost of acquisition	$25,000
Net cash received from subsidiary- Ricare Corporation	(4,028)
Transaction costs attributable to the issuance of shares	27,954
Net cash outflow from acquisition	$48,926

The purchase consideration for the acquisition of Ricare Corporation is $258,462 thousand, and the full consideration has been paid in February, 2025.

The net asset amount recognized in the financial statements as of June 30, 2024, is measured by provisional fair value. The Company has sought an independent appraisal for the assets held by Ricare Corporation. The assessment of the aforementioned intangible assets has been completed. The results indicated that their fair value on the acquisition date was $48,902 thousand, increasing by $48,902 thousand in comparison with the provisional assessment. This resulted in an increase in deferred tax liabilities by $9,780 thousand and a reduction in non controlling interests by $35,830 thousand, which correspondingly reduced goodwill by $26,182 thousand. Therefore, the goodwill arising from the acquisition is $150,477 thousand.

The valuation of the fair value was completed in the fourth quarter of 2024 and showed that the fair value at the date of acquisition was in the amount of $42,442 thousand, an decrease of $34,639 compared to the provisional value

The comparative information of the Company for the period from January 1 to December 31, 2024 has been retrospectively adjusted as set forth below to reflect the aforementioned increase in amounts.

The fair value adjustment at the date of acquisition below:

	Provisional fair value	Differences adjustment	Fair value after measurement
Asset
Intangible assets	$83,846	$(31,624)	$52,222
Subtotal	83,846	(31,624)	52,222
Liabilities
Deferred income tax liabilities	6,765	3,015	9,780
Subtotal	6,765	3,015	9,780
Identifiable net assets	$77,081	$(34,639)	$42,442

The adjustment indicated that goodwill decreasing by $26,182 thousand in comparison with the provisional assessment by $176,659 thousand, the goodwill arising from the acquisition is $150,477 thousand, the amount changes are listed below:

	Provisional fair value	Differences adjustment	Remeasurements of the fair value
Purchase consideration	$160,000	$-	$160,000
Add: shares held at fair value	98,462	-	98,462
Add: non-controlling interests at fair value	61,539	(35,830)	25,709
Less: identifiable net assets at fair value	(143,342)	9,648	(133,694)
Goodwill	$176,659	$(26,182)	$150,477

7. Related Party Transactions

Information of the related parties that had transactions with the Company during the financial reporting period is as follows:

Name and nature of relationship of the related parties

Name of the related parties	Nature of relationship of the related parties
Dollars Cultural & Creative Company Limited	Subsidiary
Formosa Sun Energy Corporation	Subsidiary
RITEK Solar CORP.	Subsidiary
Ikari Coffee Co., Ltd.	Subsidiary
ShokuRaku Corporation	Subsidiary
Foodspace Corporation	Subsidiary(Note 4)
Jingle Hot Pot Corporation	Subsidiary
Chao Fu Co., Ltd.	Subsidiary
Bircle international Trading Limited	Subsidiary(Note 3)
Ricare Corporation	Subsidiary(Note 2)
Ritek Corporation	Associate(Note 1)
Ritwin Corporation	The Company’s chairman is the same as the director of the Incorporation’s Associate
Finesil Technology Inc.	Same chairman as the Company
Newrit Asset Co.,Ltd.	Same chairman as the Company
AI Investments Limited	The reinvestment company of the Company’s related party
Kunshan Kunloi Trading Co., Ltd.	Subsidiary of the Company’s Associate

Note 1: Ritek Corporation failed to obtain a majority of the board seats in the third quarter of 2024. Therefore Ritek Corporation lost the substantial control over the Company and is no longer the parent company of the Company.

Note 2: As from February 1, 2024, the entity has been a subsidiary of the Company.

Note 3: As from November 1, 2024, the entity has been a subsidiary of the Company.

Note 4: The subsidiary had completed its dissolution on July 14, 2025.

Significant transactions with the related parties

(1) Sale of goods

	2025	2024
Associate
Ritek Corporation	$396	$293
Subsidiaries
Chao Fu Co., Ltd.	22	-
Bircle international Trading Limited	127	-
Other related parties
Newrit Asset Co.,Ltd.	2	-
Kunshan Kunloi Trading Co., Ltd.	228	-
Total	$775	$293

The sales price to the above related parties was determined through mutual agreement based on the market rates. The collection period for domestic sales to related parties was month-end 90 days, while the terms for overseas sales were approximately 90-120 days from FOB shipping point. The collection period for third party domestic sales was month-end 30-150 days, while the terms for overseas sales were 30-150 days from FOB shipping point. The outstanding balances at December 31, 2025 and 2024 was unsecured, non-interest bearing and must be settled in cash. The receivables from the related parties were not guaranteed.

(2) Purchase

	2025	2024
Associate
Ritek Corporation	$1,753	$8,540

The purchase price to the above related parties was determined through mutual agreement based on the market rates. The payment terms from the related party suppliers were comparable with third party suppliers and were between 1-4 months.

(3) Accounts receivable - related parties, net

	December 31, 2025	December 31, 2024
Associate
Ritek Corporation	$199	$147
Other related party
Newrit Asset Co.,Ltd.	2	-
Less: loss allowance	-	-
Net	$201	$147

(4) Other current assets (non-financing)

	December 31, 2025	December 31, 2024
Subsidiary
Formosa Sun Energy Corporation	$53	$53
Less: loss allowance	-	-
Subtotal	53	53
Less: longer than one year	-	-
Net	$53	$53

(5) Accounts payable - related parties

	December 31, 2025	December 31, 2024
Associate
Ritek Corporation	$39	$4,937

(6) Other payables - related parties (non-financing)

	December 31, 2025	December 31, 2024
Associate
Ritek Corporation	$34	$68
Other related parties
Finesil Technology Inc.	-	8
Total	$34	$76

(7) Other current liabilities

	December 31, 2025	December 31, 2024
Subsidiary
Formosa Sun Energy Corporation	$27	$27

(8) Property transactions

Property, plant and equipment

Assets purchased by the Company to related parties

	Account details	2025	2024
Associate
Ritek Corporation	Machinery and equipment
Buildings	$126	$-
		44	-
		$170	$-

(9) Operating costs

	Account details	2025	2024
Associate
Ritek Corporation	Repairment and maintenance expense and miscellaneous fees	$355	$58
Other related party
Finesil Technology Inc.	Miscellaneous fees	32	29
Total		$387	$87

(10) Operating expenses

	Account details	2025	2024
Subsidiaries
Ikari Coffee Co., Ltd.	Entertainment expenses and miscellaneous fees	$17	$32
Dollars Cultural & Creative Company Limited	Entertainment expenses and miscellaneous fees	191	122
Ricare Corporation	Sundry Purchases	-	12
Jingle Hot Pot Corporation	Entertainment expenses	4	-
Associate
Ritek Corporation	Repairment and maintenance expense, professional service fees and miscellaneous fees	786	4,431
Other related parties
Finesil Technology Inc.	Miscellaneous fees and repairment and maintenance expense	346	22
Kunshan Kunloi Trading Co., Ltd.	Miscellaneous fees	-	961
Total		$1,344	$5,580

(11) Lease - related parties

Rental income

	Account details	2025	2024
Subsidiaries
Dollars Cultural & Creative Company Limited	Buildings	$894	$-
Formosa Sun Energy Corporation	〃	560	560
RITEK Solar CORP.	〃	36	36
Ikari Coffee Co., Ltd.	〃	724	900
Foodspace Corporation	〃	15	36
Ricare Corporation	〃	1,116	1,116
ShokuRaku Corporation	〃	12	-
Jingle Hot Pot Corporation	〃	4	-
Bircle international Trading Limited	〃	12	5
Other related party
AI Investments Limited	〃	12	6
Total		$3,385	$2,659

The lease term and rent collection method are based on the contract. Generally, the lease term was 2 to 6.9 years, and the rent was mainly charged on a monthly basis.

(12) Endorsements and guarantees

As at December 31, 2025 and 2024, the endorsement amount of related party of the Company is as follows:

	December 31, 2025	December 31, 2024
Subsidiaries
Dollars Cultural & Creative Company Limited	$110,000	$110,000
Ikari Coffee Co., Ltd.	30,000	30,000
Total	$140,000	$140,000

(13) Non-operating income and expenses - other income

	2025	2024
Subsidiaries
Formosa Sun Energy Corporation	$2,202	$2,284
Ikari Coffee Co., Ltd.	4	-
Ricare Corporation	88	84
Bircle international Trading Limited	3	-
Associate
Ritek Corporation	15	-
Other related party
Ritwin Corporation	45	-
Total	$2,357	$2,368

(14) Key management personnel compensation

	2025	2024
Short-term employee benefits	$19,756	$18,044
Post-employment benefits	453	352
Total	$20,209	$18,396

8. Assets Pledged as Security

The following table lists assets of the Company pledged as security:

Items	Carrying amount		Secured liabilities
	December 31, 2025	December 31, 2024
Property, plant and equipment - land and buildings	$677,233	$683,233	Long-term and short-term borrowings

9. Commitments and Contingencies

(a) The issued guarantee notes are as follows:

Currency	December 31, 2025	Applications
NTD	$2,123,000	Long-term and short-term borrowings, letter of credit
USD	1,698	loans, commercial paper and financial instruments transactions

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(b) The option premium contracts signed by the Company for the production of CD-Audio, VIDEO CD DISC and DVD DISCS are listed below:

Object	Items	Contract period	Royalty calculation method
Company A	DVD DISCS technical license	January 1, 2001 onwards	Quantity of products sold according to the contracted specifications
Company B	DVD DISCS technical license	June 1, 2011 onwards	Quantity of products sold according to the contracted specifications
Company C	DVD DISCS technical license	From July 1, 2004 to October 1, 2029	Quantity of products sold according to the contracted specifications
Company D	BD ROM DISCS technical license	December 1, 2012 onwards	Quantity of products sold according to the contracted specifications
Company E	BD ROM DISCS technical license	January 1, 2011 onwards	Quantity of products sold according to the contracted specifications
Company F	BD ROM DISCS technical license	March 12, 2014 onwards	Quantity of products sold according to the contracted specifications

Imported material guarantee	December 31, 2025
	$3,000

Losses Due to Major Disasters

None.

Significant Subsequent Events

None.

12. Others

(1) Categories of financial instruments

Financial assets

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss:
Mandatorily measured at fair value through profit or loss	$3,100	$63,440
Financial assets at fair value through other comprehensive income	45,523	25,995
Financial assets measured at amortized cost:
Cash and cash equivalents (excluding cash on hand)	376,726	306,985
Notes receivable	381	807
Accounts receivable (including related parties)	55,468	69,913
Other receivables (recorded as other current assets)	3,138	2,522
Subtotal	435,713	380,227
Total	$484,336	$469,662

Financial liabilities

	December 31, 2025	December 31, 2024
Financial liabilities measured at amortized cost:
Short-term borrowings	$99,000	$120,000
Notes payable	809	1,271
Accounts payable (including related parties)	17,688	17,097
Other payables (including related parties)	57,408	64,741
Long-term borrowings (including due within one year)	975,816	671,500
Total	$1,150,721	$874,609

(2) Financial risk management objectives and policies

The Company's principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies measures and manages the aforementioned risks based on the Company's policy and risk appetite.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and the Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there is usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take the interdependencies between risk variables into account.

Foreign currency risk

The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense are denominated in a different currency from the Company's functional currency) and the Company's net investments in foreign subsidiaries.

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Company also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Hedge accounting is not applied as they did not qualify for hedge accounting criteria. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company's profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Company's foreign currency risk is mainly related to the volatility in the exchange rates for USD and JPY. The information of the sensitivity analysis is as follows:

A. When NTD strengthens/weakens against USD by 1%, the profit for the years ended December 31, 2025 and 2024 is decreased/increased by $141 thousand and $553 thousand, respectively, the equity is decreased/increased by $141 thousand and $553 thousand, respectively.

B. When NTD strengthens/weakens against JPY by 1%, the profit for the years ended December 31, 2025 and 2024 is decreased/increased by $1,047 thousand and $1,201 thousand, respectively, the equity is decreased/increased by $1,047 thousand and $1,201 thousand, respectively.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt instrument investments at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable loans and borrowings. Hedge accounting does not apply to these swaps as they do not qualify for it.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2025 and 2024 to increase/decrease by $1,079 thousand and $792 thousand, respectively.

Equity price risk

The fair value of the Company's listed and unlisted equity securities is susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company's listed and unlisted equity securities are classified under financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income, respectively. The Company manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company's senior management on a regular basis. The Company's Board of Directors reviews and approves all equity investment decisions.

At the reporting date, a change of 1% in the price of the listed equity securities measured at fair value through profit or loss could increase/decrease the Company's profit for the years ended December 31, 2025 and 2024 by $31 thousand and $634 thousand, respectively.

At the reporting date, a change of 1% in the price of the listed companies stocks classified as equity instrument investments measured at fair value through other comprehensive income could have an effect of $291 thousand and $32 thousand on the equity attributable to the Company for the years ended December 31, 2025 and 2024, respectively.

Please refer to Note 12.(9) for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts and notes receivable) and from its financing activities, including bank deposits and other financial instruments.

Credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to credit risk management. Credit limits are established for all counter parties based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company's internal rating criteria etc. Certain counter parties' credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment.

As of December 31, 2025 and 2024, trade receivables from top ten customers accounted for 74% and 85% of the total trade receivables of the Group, respectively. The credit concentration risk of other trade receivables is insignificant as well.

Credit risk from balances with banks, fixed income securities and other financial instruments is managed by the Company's treasury in accordance with the Company's policy. The Company only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating. Consequently, there is no significant credit risk for these counter parties.

The Company adopted IFRS 9 to assess the expected credit losses. Except for trade receivables, the remaining debt instrument investments which are not measured at fair value through profit or loss, low credit risk for these investments is a prerequisite upon acquisition and by using their credit risk as a basis for the distinction of categories.

The Company makes an assessment at each reporting date as to whether the debt instrument investments are still considered low credit risk, and then further determines the method of measuring the loss allowance and the loss rates.

Financial assets are written off when there is no realistic prospect of future recovery (the issuer or the debtor is in financial difficulties or bankruptcy).

When the credit risk on debt instrument investment has increased, the Company will dispose that investment in order to minimize the credit losses. When assessing the expected credit losses, the evaluation of the forward-looking information (available without undue cost and effort) is mainly based on the macroeconomic information and the credit loss ratio is further adjusted if there is significant impact from forward-looking information.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(5) Liquidity risk management

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments and bank borrowings. The table below summarizes the maturity profile of the Company's financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as at the end of the reporting period.

Non-derivative financial liabilities

	Less than 1 year	2-3 years	4-5 years	> 5 years	Total
December 31, 2025
Borrowings	$251,402	$345,187	$1,227,755	$-	$1,824,344
Trade and other payables	75,905	-	-	-	75,905
December 31, 2024
Borrowings	$277,964	$298,920	$177,499	$71,024	$825,407
Trade and other payables	83,109	-	-	-	83,109

(6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the year ended December 31, 2025:

	Short-term borrowings	Long-term borrowings (including due within one year)	Other liabilities	Total liabilities from financing activities
January 1, 2025	$120,000	$671,500	$2,785	$794,285
Cash flows	(21,000)	304,316	50	283,366
Amortization of interest expense	-	-	-	-
Non-cash changes	-	-	-	-
December 31, 2025	$99,000	$975,816	$2,835	$1,077,651

Reconciliation of liabilities for the years ended December 31, 2024:

	Short-term borrowings	Long-term borrowings (including due within one year)	Other liabilities	Total liabilities from financing activities
January 1, 2024	$75,000	$420,000	$2,785	$497,785
Cash flows	45,000	251,500	-	296,500
Amortization of interest expense	-	-	-	-
Non-cash changes	-	-	-	-
December 31, 2024	$120,000	$671,500	$2,785	$794,285

(7) Fair values of financial instruments

A. The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

(a) The carrying amount of cash and cash equivalents, trade and other receivables, restricted assets and trade and other payables approximate their fair value due to their short maturities.

(b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities, beneficiary certificates, bonds etc.) at the reporting date.

(c) Fair value of equity instruments without market quotations are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information.

(d) Fair value of debt instruments without market quotations, bank loans and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument.

B. Fair value of financial instruments measured at amortized cost

The Company's financial assets and liabilities measured at amortized cost whose carrying amount approximate their fair value.

C. Fair value measurement hierarchy for financial instruments

Please refer to Note 12.(9) for fair value measurement hierarchy for financial instruments of the Company.

(8) Derivative financial instruments

As of December 31, 2025, and 2024, the Company did not hold any derivative instruments that not qualified for hedge accounting and not yet settled.

(9) Fair value measurement hierarchy

A. Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

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

Level 3 - Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

B. Fair value measurement hierarchy of the Company's assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company's assets and liabilities measured at fair value on a recurring basis is as follows:

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss
Stocks	$3,100	$-	$-	$3,100
Financial assets at fair value through other comprehensive income
Equity instrument measured at fair value through other comprehensive income	29,122	-	16,401	45,523
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss
Funds	$63,440	$-	$-	$63,440
Financial assets at fair value through other comprehensive income
Equity instrument measured at fair value through other comprehensive income	3,164	-	22,831	25,995

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Transfers between Level 1 and Level 2 during the period

During the years ended December 31, 2025 and 2024, there were no transfers between Level 1 and Level 2 fair value measurements.

Details of changes in the third level of the measured at fair value on a recurring basis

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

	At fair value through other comprehensive income
	Stocks
Beginning balances as at January 1, 2025	$22,831
Total gains and losses recognized for the year ended December 31, 2025:
Amount recognized in OCI (presented in “Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income”)	(3,409)
Acquisition/issues for the year ended December 31, 2025	-
Disposal/settlement for the year ended December 31, 2025	(3,021)
Proceeds from capital reduction	-
Transfer in/(out) of Level 3	-
Ending balances as at December 31, 2025	$16,401
	At fair value through other comprehensive income
	Stocks
Beginning balances as at January 1, 2024	$38,672
Total gains and losses recognized for the year ended December 31, 2024:
Amount recognized in OCI (presented in “Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income”)	(5,081)
Acquisition/issues for the year ended December 31, 2024	-
Proceeds from capital reduction	(10,760)
Transfer in/(out) of Level 3	-
Ending balances as at December 31, 2024	$22,831

Total losses recognized in profit or loss for the years ended December 31, 2025 and 2024 in the table above contained gains (losses) related to assets on hand as at December 31, 2025 and 2024 in the amount of $(3,409) thousand and $(5,081) thousand, respectively.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

December 31, 2025

	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
Financial assets:
Financial assets at fair value through other comprehensive income
Stocks	Market approach	discount for lack of marketability	20%	The higher the discount for lack of marketability, the lower the fair value of the stocks	1% increase (decrease) in the discount for lack of marketability would result in decrease (increase) in the Company’s equity by $205 thousand

December 31, 2024

	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
Financial assets:
Financial assets at fair value through other comprehensive income
Stocks	Market approach	discount for lack of marketability	20%	The higher the discount for lack of marketability, the lower the fair value of the stocks	1% increase (decrease) in the discount for lack of marketability would result in decrease (increase) in the Company’s equity by $285 thousand

Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Company's investment department is responsible for validating the fair value measurements and ensuring that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The department analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company's accounting policies at each reporting date.

C. Fair value measurement hierarchy of the Company's assets and liabilities not measured at fair value but for which the fair value is disclosed

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investment properties, net (please refer to Note 6.(9))	$-	$-	$171,883	$171,883

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investment properties, net (please refer to Note 6.(9))	$-	$-	$171,760	$171,760

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(10) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

	December 31, 2025
	Foreign currencies	Foreign exchange rate	NTD
Financial assets
Monetary items:
USD	$734	31.4000	$23,052
JPY	521,915	0.2008	104,801
Financial liabilities
Monetary items:
USD	284	31.4000	8,917
JPY	273	0.2008	55
	December 31, 2024
	Foreign currencies	Foreign exchange rate	NTD
Financial assets
Monetary items:
USD	$1,845	32.7550	$60,418
JPY	578,497	0.2091	120,964
Financial liabilities
Monetary items:
USD	157	32.7550	5,132
JPY	4,067	0.2091	850

As the Company has a large variety of foreign currencies, it is not possible to disclose the foreign currency exchange gains or losses information of monetary financial assets and financial liabilities on each foreign currency's exposure to major impact. The Company's foreign exchange gains (losses) for the years ended December 31, 2025 and 2024 were $(2,393) thousand and $2,392 thousand, respectively.

The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency).

(11) Capital Management

The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

Notes for Disclosures

(1) Information related to significant transactions

A. Financings provided to others: None.
B. Endorsements/guarantees provided to others: Table 1.
C. Marketable securities held: Table 2.
D. Individual securities acquired or disposed of with accumulated amount exceeding NTD 300 million or 20% of the capital stock: None.
E. Receivables due from related parities amounting to at least NTD 100 million or 20% of the paid-in capital: None.
F. Business, relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and accounts of any significant transactions between them: None.

(2) Information on investees

For investee companies outside mainland China over which the Company has significant influence, control, or joint control, the related information : Table 3.

(3) Information on investments in mainland China: None

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Table1: Endorsements/guarantees provided to others

No.	Collaterals/Guarantee Provider	Counter-part		Limits on Each Counter-party's Collateral/Guarantee Amounts (Note 1)	Maximum Balance Accumulated up to the End of This Month	Ending Balance	Actual Amount Drawn Down	Amount of Properties Guaranteed by Collateral	Ratio of Accumulated Amount of Collateral to Net Asset Value of the Latest Financial Statement	Maximum Collateral/Guarantee Amounts Allowable	Provision of Endorsements by Parent Company to Subsidiary	Provision of Endorsements by Subsidiary to Parent Company	Provision of Endorsements to the Company in Mainland China
		Name	Relationship (Note 2)
0	U-Tech Media Corporation	Dollars Cultural & Creative Company Limited IKARI COFFEE CO., LTD.	2	$367,144	$110,000	$110,000	$70,000	$-	4.49%	$734,287	Y	N	N
0	a	a	2	a	30,000	30,000	-	-	1.23%	a	Y	N	N

Note 1: The total amount of guarantee provided is 30% of the current net value. For each company, the total amount of guarantee provided is 15% of the current net value.

Note 2: The relationship between the collaterals/guarantee provider and the counter-party is as follows:

The company with business transaction.
The company owns directly or indirectly over 50% ownership of the investee company.
The investee company owns directly or indirectly over 50% ownership of the company.
The company owns directly or indirectly over 90% ownership of the investee company.
Companies that guarantee each other in accordance with the provisions of the contract between its peers or co-creators based on the needs of undertaking works.
Company that guaranteed by all the contributing shareholders according to the shareholding ratio due to the joint investment relationship.
In accordance with the consumer protection law, the joint guarantee of performance for the sale contract of pre-sale houses among peers.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Table 2: Material Securities Held at the End of the Period

Holding Company	Securities Type and Name	Relationship with the Holding Company	Financial Statement Account	End of the year of 2025
				Shares/Units (in thousands)	Carrying Value	Percentage of Ownership (%)	Fair Value
U-Tech Media Corporation	Taiwan Semiconductor Manufacturing Company, Ltd	None	Financial assets at fair value through profit or loss - current	2	$3,100	0.00%	$3,100
	BMB Venture Capital Investment Corporation	None	Financial assets at fair value through other comprehensive income - non-current	3,474	$16,401	14.09%	$16,401
	AimCore Technology Co., Ltd.	Investment accounted for using the equity method	"	1,181	$29,122	1.73%	$29,122
					$45,523		$45,523
	Total
Formosa Sun Energy Corporation	Sacum Carbon CO., LTD	None	Financial assets at fair value through other comprehensive income - non-current	213	$3,209	0.82%	$3,209
	Ritek Corporation	Associate	"	2,714	$41,524	0.39%	$41,524
	Total				$44,733		$44,733
Ritfast Corporation	Taiwan Semiconductor Manufacturing Company, Ltd	None	Financial assets at fair value through profit or loss - current	8	$12,400	0.00%	$12,400
	Ritek Corporation	Associate	Financial assets at fair value through other comprehensive income - non-current	2,659	$40,683	0.38%	$40,683
Glory Days Services Ltd.	Legend Crown Investment Ltd.	None	Financial assets at fair value through other comprehensive income - non-current	2,352	$62,996	9.80%	$62,996
Dollars Cultural & Creative Company Limited	Universe Star International Co., Ltd.	Same chairman as the Company	Financial assets at fair value through other comprehensive income - non-current	338	$-	15.00%	$-
Ricare Corporation	Kabushiki Kaisha Yumenomizuumisha	None	Financial assets at fair value through other comprehensive income - non-current	0.032	$-	7.51%	$-

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

C-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Table 3: Name of invoice company, location and other related information:

Invoiter Company	Invoiter Company	Location	Main Business Activities	Initial Investment Amount		Held by the Company			Net Income (Loss) of the Invoiter	Share of Income (Loss) of the Invoiter	Note
				As of December 31, 2025	As of December 31, 2024	Shares (in thousands)	Percentage (%)	Carrying Value
U-Tech Media Corporation	Dollars Cultural & Creative Company Limited	Taipei	Catering	$385,500	$385,500	27,828	100.00%	$123,809	$(39,811)	$(39,811)
o	ProBit Corporation	Mianli	Electronics industry	23,653	23,653	333	0.63%	7,101	(8,210)	(52)
o	KilSloplay Corporation	Hsinchu	Manufacturer of related OLED products	32,045	36,111	4,886	4.70%	131,200	(52,237)	(2,415)
o	Chao-Fu Co., Ltd.	Tanyuan	Wine making	5,000	5,000	500	100.00%	2,316	301	301
o	Formosa Sun Energy Corporation	Tanyuan	Renewable energy self-powered equipment	642,860	642,860	64,459	70.82%	891,294	69,893	49,498
o	Jade Investment Services Ltd.	B.V.I.	Investment holdings	106,501	106,501	1,685	100.00%	342,732	299	299
o	Ricare Corporation	Tanyuan	Management consulting industry	689,994	489,994	32,112	92.34%	739,603	15,699	10,721	Note 1
	Total							$2,238,055		$(1,659)
Dollars Cultural & Creative Company Limited	Shokolfaka Corporation	Tanyuan	Catering	18,000	18,000	1,800	85.71%	$2,160	$(5,636)	$(4,831)
o	Bazi Coffee Co., Ltd.	Tanyuan	Catering	105,200	105,200	7,970	96.72%	27,604	(512)	(495)
o	Ink Design Space Co., Ltd.	Taipei	Landscape and interior design	7,000	7,000	810	25.00%	3,855	(18,244)	(4,561)
o	Single Hot Pot Corporation	Taipei	Catering	28,000	28,000	2,306	94.90%	6,438	(4,596)	(4,362)
o	Foodspace Corporation	Tanyuan	Catering	-	9,660	-	0.00%	-	(452)	(415)	Note 2
o	Yi International Co., Ltd.	Taipei	Catering	8,000	8,000	800	20.00%	4,212	(13,719)	(2,744)
o	Circle international Trading Limited	Tanyuan	Catering	11,014	1,014	-	100.00%	9,915	(987)	(987)
o	SHU MI CO., LTD.	Vietnam	Catering	233	-	-	100.00%	163	(81)	(81)	Note 3
	Total							$54,347		$(18,476)
Formosa Sun Energy Corporation	RITEK Solar CORP.	Tanyuan	Renewable energy self-powered equipment	10,000	10,000	1,000	100.00%	$9,117	$63	$45
o	RitFast Corporation	Hsinchu	Renewable energy self-powered equipment	355,144	346,981	33,000	100.00%	409,265	34,826	24,624	Note 4
o	FD COMPANY	Japan	International Trading Industry	2,120	2,120	10	100.00%	1,885	(35)	(25)
	Total							$420,267		$24,644
Ricare Corporation	Fang Si Advisory Ltd.	Hsinchu	Management consulting industry	500	500	50	100.00%	$470	$3	$3
o	Ricare Services Corporation	Hsinchu	Care Services Industry	500	500	50	100.00%	463	3	3
o	KEIYOO Co.,Ltd.	Japan	Care Services Industry	65,340	65,340	0.005	100.00%	115,041	6,342	5,733
o	K.K. RICARE JAPAN	Japan	Care Services Industry	438,985	269,452	3.44	77.48%	412,999	(4,381)	(3,410)	Note 5
o	Ricare International Corporation Ltd.	HongKong	Management consulting industry	-	-	-	-	-	-	-	Note 6
	Total							$528,973		$2,529

Note 1: Ricare Corporation conducted a capital increase by issuing new shares on June 4, 2025. The Group subscribed to all of the newly issued shares, resulting in an increase of its ownership interest by $2.43\%$ .
Note 2: Dollars Cultural & Creative Company Limited acquired the remaining 84 thousand shares of Foodspace Corporation. on June 13, 2025, increasing its shareholding to $100\%$ . Foodspace Corporation resolved to dissolve upon approval of the board of directors on June 30, 2025 and completed the dissolution registration on July 14, 2025.
Note 3: SHU MI CO., LTD. completed its company establishment registration procedures on April 24, 2025, with total issued capital of NT$233 thousand.
Note 4: Formosa Sun Energy Corporation resolved to acquire the remaining equity interest in RitFast Corporation on December 26, 2024. As of June 30, 2025, the acquisition of the remaining equity had been completed, increasing its shareholding to $100\%$ .
Note 5: K.K. RICARE JAPAN conducted a capital increase by issuing new shares on June 20, 2025. Ricare Corporation did not subscribe to 1,350 shares in proportion to its shareholding, resulting in a decrease of its ownership interest by $22.52\%$ .
Note 6: Ricare International Corporation Ltd. completed its company establishment registration procedures on April 17, 2018 and announced the revocation of its registration on August 8, 2025 and was dissolved on the same date pursuant to such announcement.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Notes to Parent-Company-Only Financial Statements (Continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Table 3-1: Name of investee company, location and other related information:

Investor	Investee	Business Location	Main Business Activities	Original Investment Amount		Held by the Company			Net Income (Loss) of the Investee	Share of Income (Loss) of the Investee	Note
				As of December 31,	As of December 31,	Shares (in thousands)	Percentage (%)	Carrying Value
Jade Investment Services Ltd.	Glory Days Services Ltd.	B.V.I.	Investment holdings	$186,981	$186,981	3,920	100.00%	$340,468	$507	$507

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

1. Statement of Cash and Cash Equivalents

As of December 31, 2025

(In thousands of New Taiwan Dollars/Foreign Currency)

Item	Description	Amount		Note
			Subtotal		Total
Cash on hand				$285
Savings
Demand deposits			$216,992
Foreign currency demand deposits	Amount in original currency	Exchange rate
JPY	$285,762	0.2008	57,381
USD	673	31.4000	21,133
AUD	2	21.0100	32
EUR	73	36.8900	2,678	298,216
Time deposits				78,510
Total				$377,011

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Financial Assets at Fair Value Through Profit or Loss - Current

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Financial Instruments	Description	Shares/Unit (in thousands)	Par Value	Amount	Interest Rates	Acquisition Costs	Fair Value
							Unit Price (NTD)	Amount
Taiwan Semiconductor Manufacturing Company, Ltd
Total	Stock	2	$-	$-	-	$1,661	1,550.00	$3,100
						$1,661		$3,100

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

3. Statements of Notes Receivable, Net

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Company A	Payment for goods	$148
Company B	“	83
Company C	“	63
Company D	“	58
Company E	“	27
Others	“	2	(Those accounting for less than 5% of the balance of this account)
Subtotal		381
Less: loss allowance		-
Net		$381

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Accounts Receivable and Accounts Receivable - Related Parties, Net

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Accounts receivable, net
Company F	Payment for goods	$22,707
Company G	„	10,118
Others	„	22,491	(Those accounting for less than 5% of the balance of this account)
Subtotal		55,316
Less: loss allowance		(49)
Net		$55,267
Accounts receivable - related parties, net
Ritek Corporation		$199
Others		2
Total		$201

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Inventories

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Amount		Note
	Cost	Net Realizable Value
Raw materials	$33,450	$31,222	Please refer to the explanations on inventories in Note 4.(10) for the accounting method of the net realizable value.
Work in progress	2,126	1,935
Finished goods	6,350	5,578
Subtotal	41,926	$38,735
Less: allowance for inventory valuation losses	(3,191)
Net	$38,735

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Other Current Assets

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Amount
	Subtotal	Total
Other receivables
Income tax refund receivable	$1,067
Others	2,018
Less: loss allowance	-	$3,085
Prepayments
Office supplies	3,325
Other prepaid expenses	2,747	6,072
Temporary payments		3,436
Other receivables - related parties
Formosa Sun Energy Corporation	53
Less: loss allowance	-	53
Total		$12,646

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Changes in Financial Assets at Fair Value Through Other Comprehensive Income - non-current

For the Year ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	As of January 1, 2025		Increase		Decrease		As of December 31, 2025		Accumulated Losses	Collateral	Note
	Shares (in thousands)	Fair Value	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Fair Value
BMB Venture Capital Investment Corporation	3,776	$22,831	-	$-	302	$(6,430)	3,474	$16,401	0	0	Note 1
AimCore Technology Co., Ltd.	113	3,164	1,160	28,011	92	(2,053)	1,181	29,122	0	0	Note 2
Total		$25,995		$28,011		$(8,483)		$45,523

Note 1 : The decrease during the period was primarily attributable to the return of shares arising from capital reduction and unrealized valuation losses.
Note 2 : The increase during the period was attributable to initial purchases and unrealized fair value gains, while the decrease during the period resulted from disposals.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Changes in Investments Accounted for under the Equity Method

For the Year ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	As of January 1, 2025		Increase		Decrease		As of December 31, 2025			Total Amount	Collateral
	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Percentage of ownership	Amount
Dollars Cultural & Creative Company Limited	27,828	$186,350	-	-	-	$62,541 (Note 1)	27,828	100.00%	$123,809	$123,809	None
ProRit Corporation	333	7,352	-	-	-	251 (Note 1)	333	0.63%	7,101	7,101	〃
RiTdisplay Corporation	4,986	140,390	50	-(Note 4)	-150	5,125 (Note 1)4,065 (Note 2)	4,886	4.70%	131,200	131,200	〃
Chao Fu Co., Ltd.	500	2,015	-	301 (Note 1)	-	-	500	100.00%	2,316	2,316	〃
Formosa Sun Energy Corporation	64,459	829,400	-	61,894 (Note 1)	-	-	64,459	70.82%	891,294	891,294	〃
Jade Investment Services Ltd.	1,685	344,920	-	-	-	2,188 (Note 1)	1,685	100.00%	342,732	342,732	〃
Ricare Corporation	23,041	547,956	8,125946	200,000 (Note 3)-(Note 4)	-	8,353 (Note 1)	32,112	92.34%	739,603	739,603	〃
Total		$2,058,383		$262,195		$82,523			$2,238,055	$2,238,055

Note 1: Amount accounted for using the equity method.
Note 2: Disposal of equity interests during the period.
Note 3: Capital increase during the period.
Note 4: Issuance of stock dividends.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Changes in Property, Plant and Equipment

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Beginning Balance	Increase	Decrease	Reclassification	Ending Balance	Collateral
Cost
Land	$521,754	-	-	-	$521,754	Please refer to Note 8 for details.
Buildings	901,821	422	-	-	902,243
Machinery and equipment	932,346	374	(90,894)	-	841,826
Office equipment	17,889	225	(320)	-	17,794
Transportation equipment	12,944	-	-	-	12,944
Other equipment	4,086	-	-	-	4,086
Total	$2,390,840	$1,021	$(91,214)	$-	$2,300,647
Depreciation and impairment
Buildings	$738,023	$7,075	-	-	$745,098
Machinery and equipment	924,839	2,289	(90,894)	-	836,234
Office equipment	16,264	905	(320)	-	16,849
Transportation equipment	11,986	500	-	-	12,486
Other equipment	4,027	39	-	-	4,066
Total	$1,695,139	$10,808	$(91,214)	$-	$1,614,733
Net carrying amount	$695,701				$685,914

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Changes in Investment Properties, Net

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Beginning balance	Increase	Decrease	Reclassification	Ending balance	Collateral	Note
Cost
Land	$110,110	$-	$-	$-	$110,110	None
Buildings	51,783	-	-	-	51,783	”
Total	$161,893	$-	$-	$-	$161,893
Depreciation and impairment
Buildings	$19,850	$2,071	$-	$-	$21,921		Please refer to the explanations on investment properties, net in Note 4.(13) for details.
Net carrying amount	$142,043				$139,972

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Deferred Tax Assets and Other Non-Current Assets

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Description	Amount
		Subtotal	Total
Deferred tax assets - non-current			$23,876
Other non-current assets
Refundable deposits	Contract deposits etc.		$1,160
Overdue receivable, net	Overdue receivable	$547
	Less: loss allowance	(547)	-
Total			$1,160

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

12. Statement of Short-Term Borrowings

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Creditor	Summary	Amount	Contract Period	Interest Rate	Borrowing Limits	Collateral
Taishin International Bank	Secured loans	$29,000	2025.12.16-2026.2.12	2.2190%	NTD 50,000	Please refer to Note 8 for details.
O-Bank	Credit loans	50,000	2025.12.1-2026.2.26	2.3784%	NTD 150,000	None
Mega International Commercial Bank	〃	20,000	2025.12.15-2026.3.13	1.9750%	USD 1,600	〃
Total		$99,000

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

13. Statement of Accounts Payable and Accounts Payable - Related Parties

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Name of Vendors	Amount	Notes
Accounts payable
Company H	$8,565
Company I	2,481
Others	6,603	(Those accounting for less than 5% of the balance of this account)
Total	$17,649
Accounts payable - related parties
Ritek Corporation	$39

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Other Payables and Other Payables - Related Parties

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Other payables
Accrued salaries	Salaries and bonus	$20,516
Accrued pension expense		15,855
Accrued utilities expense		3,749
Accrued export expense		3,408
Accrued professional service fees		3,395
Accrued repair and maintenance expense		3,431	(Those accounting for less than 5% of the balance of this account)
Others		7,020
Total		$57,374
Other payables - related parties
Ritek Corporation		$34
Total		$34

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Current Income Tax Liabilities and Other Current Liabilities

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Description	Amount
Other current liabilities
Contract liabilities		$944
Receipts under custody	Tax withholding for labor, health insurance, etc.	710
Temporary receipts		90
Total		$1,744

100

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Long-Term Borrowings

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Creditor	Summary	Amount	Contract Period	Interest Rate	Collateral
Taiwan Cooperative Bank	Secured loans	$800,000	2025.10.22-2030.10.22	2.3097%	Please refer to Note 8 for details.
〃	〃	90,000	2025.11.04-2030.10.22	2.4683%	〃
〃	〃	90,000	2025.11.04-2026.02.02	2.4683%	〃
Subtotal		980,000
Less: arrangement fee		(4,184)
Less: due within one year		(128,000)
Total		$847,816

101

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

17. Statement of Deferred Tax Liabilities and Other Non-Current Liabilities

As of December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Description	Amount
Deferred tax liabilities - non-current		$3,309
Other non-current liabilities
Deposits received		$2,835
Others	Unused annual leaves	6,300
Total		$9,135
Net defined benefit liabilities - non-current		$9,704

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Operating Revenue

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Sales of goods	Sales of CD and DVD etc.	$367,048
Operating revenues		$367,048

103

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Operating Costs

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Amount
	Subtotal	Total
Manufacturing business
Direct materials, beginning balance	$30,989
Add: Purchase in the current period	69,809
Less: Direct materials, ending balance	(30,078)
Direct materials sold	-
Other	(2)
Direct materials consumed in the current period		$70,718
Supplies materials, beginning balance	4,043
Add: Purchase in the current period	22,099
Less: Supplies materials, ending balance	(3,372)
Supplies materials sold	(950)
Productions consumed	(13,503)
Supplies materials consumed in the current period		8,317
Direct labor		72,925
Manufacturing overheads		101,549
Manufacturing costs		253,509
Add: Work in progress, beginning balance		1,999
Transferred in		52,341
Other		32
Less: Work in progress, ending balance		(2,126)
Cost of finished goods		305,755
Add: Finished goods, beginning balance		7,884
Purchase in the current period		22,207
Less: Finished goods, ending balance		(6,350)
Transferred out		(52,341)
Departments consumed		-
Others		(138)
Production and marketing costs		277,017
Trading business
Inventories, beginning balance	110
Add: Purchase in the current period	2,143
Direct and supplies materials sold	1,086
Others	(8)
Less: Inventories, ending balance	-
Cost of goods sold		3,331
Total		$280,348

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Manufacturing Overheads

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Amount	Note
Indirect labor	$22,146
Repairs and maintenance expenses	15,411
Utilities	28,795
Depreciation	6,480
Consumption fees	11,210	(Those accounting for less than 5% of the balance of this account)
Others	17,507
Total	$101,549

105

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Operating Expenses

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Amount	Note
Sales and marketing expenses
Salaries	$8,900
Export expenses	14,510	(Those accounting for less than 5% of the balance of this account)
Others	5,290
Total	$28,700
General and administrative expenses
Salaries	$33,027
Insurances	3,821
Professional service fees	4,203
Taxes	3,502	(Those accounting for less than 5% of the balance of this account)
Others	19,856
Total	$64,409

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Statement of Non-Operating Income and Expenses

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item	Description	Amount
		Subtotal	Total
Interest income	Interest from demand deposits and time deposits		$3,380
Other income
Rental income		$25,423
Dividends income		434
Others	Transfer of excess customer payments to revenue and other	5,690	31,547
Other gains and losses
Disposition of investment interests		8,256
Losses on financial assets at fair value through profit or loss		(2,002)
Foreign exchange gains (losses), net		(2,393)
Others	Depreciation on leased assets and others	(5,026)	(1,165)
Finance costs
Interest on bank borrowings			(19,688)
Share of profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method			(1,459)
Total			$12,615

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

U-Tech Media Corporation

Summary Statement of Employee Benefits, Depreciation and Amortization Expenses by Function for the Period

For the Year Ended December 31, 2025

(In thousands of New Taiwan Dollars)

| Function
Nature | 2025 | | | | 2024 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Operating Costs | Operating Expenses | Non-operating Expenses | Total | Operating Costs | Operating Expenses | Non-operating Expenses | Total |
| Employee benefits | | | | | | | | |
| Salaries | $79,463 | $39,299 | $- | $118,762 | $85,980 | $40,412 | $- | $126,392 |
| Labor and health | 9,674 | 3,869 | - | 13,543 | 10,012 | 3,793 | - | 13,805 |
| Pension | 4,028 | 1,983 | - | 6,011 | 4,111 | 2,036 | - | 6,147 |
| Remuneration to directors | - | 645 | - | 645 | - | 3,327 | - | 3,327 |
| Other employee benefits expense | 6,277 | 2,219 | - | 8,496 | 5,704 | 1,768 | - | 7,472 |
| Depreciation | 6,480 | 2,682 | 3,717 | 12,879 | 6,219 | 2,416 | 3,819 | 12,454 |
| Amortization | - | - | - | - | - | - | - | - |

Note 1: The number of employees of the Company was 188 and 199 persons for the years ended December 31, 2025 and 2024, respectively, of which 5 and 6 directors were not employees.
Note 2: Average employee benefits of 2025 and 2024 were $802 thousand and $797 thousand respectively;
Average salaries of 2025 and 2024 were $649 thousand and $655 thousand respectively;
Changes in average salaries were -0.92%.
Note 3: Disclosure of supervisors' remuneration for the years ended December 31, 2025 is not applicable.
Note 4: The salary and remuneration policy of the Company as follows:

The remuneration to directors and supervisors includes the distribution of earnings and the execution of business. As for carriage fees, they are paid based on the attendance of directors and supervisors at board meetings with reference to industry standards; as for the distribution of earnings, in accordance with Article 32 of the Company's Articles of Incorporation, the remuneration to directors and supervisors shall be no more than 5% of the Company's earnings, taking into account the Company's operating results and its contribution to the Company's performance.
The remuneration of the General Manager and Deputy General Manager is determined in accordance with the Company's Salary Management Regulations, taking into account industry standards, their professional competence, their contribution to the Company's operating performance and financial position, and the possible risks to the future. And is paid after consideration by the Company's Salary and Compensation Committee and submission to the Board of Directors for resolution.
The remuneration policy of our employees is based on the performance and contribution of the individual to the Company, in addition to industry standard sand the Company's operating conditions. Salaries include basic salary, allowances, overtime and bonuses, etc. Basic salary is based on academic experience, professional skills and the value of the position held; bonuses are subject to the Company's operating surplus and individual performance.

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U-TECH — Audit Report / Information 2026

52282_rns_2026-05-14_b6aac4db-1f4c-4e78-97d3-1d78735637b3.pdf

Parent-Company-Only Financial Statements

Independent Auditors' Report

Audit Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition

Allowance for Accounts Receivable

Other Matter - Making Reference to the Audits of Component Auditors

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

Auditors' Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Notice to Readers

English Translation of Financial Statements Originally Issued in Chinese

English Translation of Financial Statements Originally Issued in Chinese

1. History and Organization

2. Date and Procedure of Authorization of Financial Statements for Issue

3. Newly Issued or Revised Standards and Interpretations

4. Summary of Material Accounting Policies

Financial assets at fair value through profit or loss

B. Impairment of financial assets

C. Derecognition of financial assets

D. Financial liabilities and equity

Classification between liabilities or equity

Equity Instruments

Financial Liabilities

Financial liabilities at amortized cost

Derecognition of financial liabilities

E. Offsetting of financial assets and liabilities

(8) Derivative instrument

The Company as a lessee

The Company as a lessor

5. Significant Accounting Judgements, Estimates and Assumptions

Defined contribution plan

Defined benefits plan

B. Capital surplus

C. Retained earnings and dividend policies

B. The Company as a lessor

Unrecognized deferred tax assets

The assessment of income tax returns

Cash flow analysis for acquisition:

7. Related Party Transactions

Significant transactions with the related parties

(1) Sale of goods

(2) Purchase

8. Assets Pledged as Security

9. Commitments and Contingencies

12. Others

(1) Categories of financial instruments

Financial assets

Financial liabilities

(2) Financial risk management objectives and policies

Interest rate risk

Equity price risk

Information on significant unobservable inputs to valuation

(10) Significant assets and liabilities denominated in foreign currencies

Notes to Parent-Company-Only Financial Statements (Continued)

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese

C-Tech Media Corporation

U-Tech Media Corporation

1. Statement of Cash and Cash Equivalents

3. Statements of Notes Receivable, Net

12. Statement of Short-Term Borrowings

13. Statement of Accounts Payable and Accounts Payable - Related Parties

17. Statement of Deferred Tax Liabilities and Other Non-Current Liabilities

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U-TECH Audit Report / Information 2026