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UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS' REPORT

DECEMBER 31, 2025 AND 2024

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

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES
DECEMBER 31, 2025 AND 2024 CONSOLIDATED FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS’ REPORT
TABLE OF CONTENTS

Contents	Page
1. Cover Page	1
2. Table of Contents	2 ~ 3
3. Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4. Independent Auditors’ Report	5 ~ 11
5. Consolidated Balance Sheets	12 ~ 13
6. Consolidated Statements of Comprehensive Income	14
7. Consolidated Statements of Changes in Equity	15
8. Consolidated Statements of Cash Flows	16 ~ 17
9. Notes to the Consolidated Financial Statements	18 ~ 63
(1) History and organization	18
(2) The date of authorization for issuance of the financial statements and procedures for authorization	18
(3) Application of new standards, amendments and interpretations	18 ~ 20
(4) Summary of material accounting policies	20 ~ 30
(5) Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty	31

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Contents

Contents	Page
(6) Details of Significant Accounts	31 ~ 49
(7) Related Party Transactions	49 ~ 51
(8) Pledged Assets	52
(9) Significant Contingent Liabilities and Unrecognised Contract Commitments	52
(10) Significant Disaster Loss	52
(11) Significant Events after the Balance Sheet Date	52
(12) Others	52 ~ 61
(13) Supplementary Disclosures	61 ~ 62
(14) Operating Segment Information	62 ~ 63

Representation Letter

In connection with the Consolidated Financial Statements of Affiliated Enterprises of Uniflex Technology Inc. (the "Consolidated FS of the Affiliates"), we represent to you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2025 in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are the same as those required to be included in the Consolidated Financial Statements of Uniflex Technology Inc. and its subsidiaries (the "Consolidated FS of the Group") in accordance with International Financial Reporting Standard 10. Additionally, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, Uniflex Technology Inc. does not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours,

Uniflex Technology Inc.

Tseng Tzyy-Jang

February 23, 2026

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE
PWCR 25000615

To the Board of Directors and Shareholders of Uniflex Technology Inc.

Opinion

We have audited the accompanying consolidated balance sheets of Uniflex Technology Inc. and its subsidiaries (the “Group”) as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

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

Basis for opinion

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

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Key audit matters

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

Key audit matters for the Group’s 2025 consolidated financial statements are stated as follows:

Valuation of allowance for inventory valuation losses

Description

Refer to Note 4(12) for accounting policy on inventory valuation, Note5 (2) for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(5) for description of allowance for inventory valuation losses. As at December 31, 2025, the Group’s inventory and allowance for valuation losses amounted to NT$328,570 thousand and NT$ 75,650, respectively.

The Group is primarily engaged in the manufacturing and sales of various kinds of printed circuit boards and other related products. As the inventories of such products are subject to rapid changes in science and technology and are susceptible to market price volatility, there is a high risk of inventory losses due to market value decline or obsolescence. The Group’s inventories are measured at the lower of cost and net realizable value. Inventory that is over a certain age and individually identified as obsolete or damaged inventory is measured at net realisable value, which is calculated based on historical data on the inventory clearance information. Also, the Group’s measurement of net realizable value for obsolete or slow-moving inventories involves subjective judgment resulting in a high degree of estimation uncertainty and complicated calculation. Considering the Group’s inventories and the allowance for inventory valuation losses are significant to the consolidated financial statements, we considered the valuation of allowance for inventory valuation losses as a key audit matter.

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How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Assessed the reasonableness of policies and procedures related to the provision of allowance for inventory valuation losses based on our understanding of the Group’s operations and the characteristics of its industry, and was consistently applied in the comparative periods of financial statements.
Reviewed the Group’s internal control process of inventory management and participated in the annual inventory count in order to assess the effectiveness of the classification of obsolete inventory and internal control over obsolete inventory.
Verified the logical appropriateness of the inventory statement used to evaluate to confirm that the information in the statements is consistent with its policies.
Verified if the market basis for measuring the net realisable value is consistent with the Group’s policies, randomly checked if the selling prices and net realisable values of individual inventories are calculated correctly, and recalculated and evaluated the reasonableness of allowance for inventory valuation losses.

Impairment assessment of property, plant and equipment

Description

Refer to Note 4(16) for accounting policy on impairment assessment of non-financial assets, Note 5(2) for accounting estimates and assumption uncertainty in relation to the impairment assessment of property, plant and equipment.

As at December 31, 2025, the Group’s property, plant and equipment amounted to NT$2,931,857 thousand, the accumulated depreciation and accumulated impairment amounted to NT$2,494,714 thousand and NT$56,857 thousand, respectively, the net amount to the Group’s property, plant and equipment was NT$380,286 thousand, constituting 18% of the consolidated total assets.

The Group applies the value-in-use model to evaluate the recoverable amount of the aforesaid property, plant and equipment. When determining the cash flows for future operations, it considered the forecasted sales growth rate by its outlook for future operations and calculated the weighted average capital cost rate as the discount rate.

Since the impairment assessment process involves subjective judgments and may lead to inappropriate accounting estimates, which is also an area where judgment must be exercised during the audit process, we identified the impairment assessment of property, plant and equipment as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Obtained the Group’s form for self-assessment on impairment of property, plant and equipment for the cash generating unit.
Assessed the reasonableness of the sales growth rate used by the management in estimating the cash flows for future operations and compared it with historical data and industry trends.
Verified if the weighted average capital cost rate used by the management, including assumptions such as the risk-free rate of return and risk premium, is consistent with the current situation of the Group and the industry, and reperformed and verified the calculation.

Other matter - Parent company only financial reports

We have audited and expressed an unqualified opinion with the other matter section on the parent company only financial statements of Uniflex Technology Inc. as at and for the years ended December 31, 2025 and 2024.

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Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

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

Auditor's responsibilities for the audit of the consolidated financial statements

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's 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.

Chen, Hsien-Cheng

Lin, Kuan-Hung

For and on behalf of PricewaterhouseCoopers, Taiwan

February 23, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers Taiwan 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.

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UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 214,860	10	$ 220,722	12
1136	Current financial assets at amortised cost	6(3)	-	-	-	-
1150	Notes receivable, net	6(4)	25,823	1	9,128	-
1170	Accounts receivable, net	6(4)	1,112,100	52	874,320	47
1200	Other receivables		13,851	1	10,604	-
130X	Inventories	6(5)	252,920	12	257,885	14
1479	Other current assets, others		30,176	1	38,084	2
11XX	Total current Assets		1,649,730	77	1,410,743	75
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(2)	-	-	-	-
1600	Property, plant and equipment	6(6) and 8	380,286	18	404,711	22
1755	Right-of-use assets	6(7) and 8	56,636	3	11,241	1
1780	Intangible assets		469	-	1,267	-
1840	Deferred income tax assets	6(22)	26,457	1	35,198	2
1915	Prepayments for equipment	6(6) and 7	8,386	-	3,935	-
1990	Other non-current assets, others	7	17,732	1	6,305	-
15XX	Total non-current assets		489,966	23	462,657	25
1XXX	Total assets		$ 2,139,696	100	$ 1,873,400	100

(Continued)

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(8) and 8	$ 368,916	17	$ 415,095	22
2170	Accounts payable		469,423	22	396,459	21
2180	Accounts payable - related parties	7	-	-	39	-
2200	Other payables	6(9)	223,810	10	225,174	12
2220	Other payables to related parties	6(9) and 7	733	-	1,229	-
2280	Current lease liabilities	6(7) and 7	5,785	-	1,968	-
2320	Long-term liabilities, current portion	6(10) and 8	78,941	4	59,167	3
2399	Other current liabilities, others		10,583	1	6,203	1
21XX	Total current Liabilities		1,158,191	54	1,105,334	59
Non-current liabilities
2540	Long-term borrowings	6(10) and 8	220,392	10	300,833	16
2570	Deferred income tax liabilities	6(22)	-	-	382	-
2580	Non-current lease liabilities	6(7) and 7	43,140	2	1,005	-
2670	Other non-current liabilities, others		45	-	45	-
25XX	Total non-current liabilities		263,577	12	302,265	16
2XXX	Total Liabilities		1,421,768	66	1,407,599	75
Equity attributable to owners of parent
	Share capital	6(13)
3110	Share capital - common stock		861,138	40	971,598	52
	Capital surplus	6(14)
3200	Capital surplus		99,265	5	395	-
	Retained earnings	6(15)
3350	Accumulated deficit		( 180,133) (	8) (	440,461) (	23)
	Other equity interest
3400	Other equity interest		( 62,342) (	3) (	65,731) (	4)
3XXX	Total equity		717,928	34	465,801	25
	Significant contingent liabilities and unrecognised contract commitments	9
	Significant events after the balance sheet date	11
3X2X	Total liabilities and equity		$ 2,139,696	100	$ 1,873,400	100

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

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for loss per share amounts)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(16) and 7	$ 2,145,029	100	$ 1,966,140	100
5000	Operating costs	6(5)(20)(21) and 7	( 2,014,097)	( 94)	( 1,921,231)	( 98)
5900	Gross profit from operations		130,932	6	44,909	2
	Operating expenses	6(20)(21)
6100	Selling expenses		( 64,439)	( 3)	( 69,229)	( 4)
6200	Administrative expenses		( 133,946)	( 6)	( 127,260)	( 6)
6300	Research and development expenses		( 78,733)	( 4)	( 82,593)	( 4)
6450	Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9		337	-	217	-
6000	Total operating expenses		( 276,781)	( 13)	( 278,865)	( 14)
6900	Operating loss		( 145,849)	( 7)	( 233,956)	( 12)
	Non-operating income and expenses
7100	Interest income	6(3)(17)	5,107	-	6,435	1
7010	Other income	6(18)	11,416	1	18,691	1
7020	Other gains and losses	6(19)	( 15,946)	( 1)	23,127	1
7050	Finance costs	7	( 26,926)	( 1)	( 17,101)	( 1)
7000	Total non-operating revenue and expenses		( 26,349)	( 1)	31,152	2
7900	Loss before income tax		( 172,198)	( 8)	( 202,804)	( 10)
7950	Income tax expense	6(22)	( 7,934)	-	( 5,678)	-
8200	Loss for the year		($ 180,132)	( 8)	($ 208,482)	( 10)
	Components of other comprehensive income (loss) that will not be reclassified to profit or loss
8316	Unrealised gains from investments in equity instruments measured by fair value through other comprehensive income	6(2)	$ 1,689	-	$ 4,546	-
	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		2,125	-	22,073	1
8399	Income tax relating to the components of other comprehensive income that will be reclassified to profit or loss	6(22)	( 425)	-	( 4,414)	-
8360	Components of other comprehensive income that will be reclassified to profit or loss		1,700	-	17,659	1
8300	Other comprehensive income for the year		$ 3,389	-	$ 22,205	1
8500	Total comprehensive loss for the year		($ 176,743)	( 8)	($ 186,277)	( 9)
	Loss, attributable to:
8610	Owners of the parent		($ 180,132)	( 8)	($ 208,482)	( 10)
8710	Comprehensive loss attributable to:
	Owners of the parent		($ 176,743)	( 8)	($ 186,277)	( 9)
9750	Basic loss per share	6(23)	($ 3.36)	($ 3.36)	($ 3.93)
9850	Diluted loss per share	6(23)	($ 3.36)	($ 3.36)	($ 3.93)

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

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Equity attributable to owners of the parent
		Capital surplus			Other equity interest			Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
		Share capital - common stock	Additional paid-in capital	Changes in ownership interests in subsidiaries	Accumulated deficit	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
Year 2024
Balance at January 1, 2024		$ 971,598	$ 39,007	$ 395	($ 270,986)	($ 53,178)	($ 34,758)	$ 652,078
Loss for the year		-	-	-	( 208,482)	-	-	( 208,482)
Other comprehensive (loss) income	6(2)	-	-	-	-	17,659	4,546	22,205
Total comprehensive (loss) income		-	-	-	( 208,482)	17,659	4,546	( 186,277)
Capital surplus used to offset accumulated deficits	6(14)	-	( 39,007)	-	39,007	-	-	-
Balance at December 31, 2024		$ 971,598	$ -	$ 395	($ 440,461)	($ 35,519)	($ 30,212)	$ 465,801
Year 2025
Balance at January 1, 2025		$ 971,598	$ -	$ 395	($ 440,461)	($ 35,519)	($ 30,212)	$ 465,801
Loss for the year		-	-	-	( 180,132)	-	-	( 180,132)
Other comprehensive income	6(2)	-	-	-	-	1,700	1,689	3,389
Total comprehensive (loss) income		-	-	-	( 180,132)	1,700	1,689	( 176,743)
Capital reduction to offset accumulated deficits	6(13)	( 440,460)	-	-	440,460	-	-	-
Issuance of shares	6(13)	330,000	82,500	-	-	-	-	412,500
Share-based payments	6(12)	-	16,370	-	-	-	-	16,370
Balance at December 31, 2025		$ 861,138	$ 98,870	$ 395	($ 180,133)	($ 33,819)	($ 28,523)	$ 717,928

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

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UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax	($)	172,198)	($) 202,804)
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense (including right-of-use assets)	6(6)(7)(20)	87,839	94,018
Amortisation expense	6(20)	777	1,467
Expected credit gain	(	337)	(217)
Share-based payments	6(12)	16,370	-
Interest expense	(	26,926	17,101
Interest income	6(17)	(5,107)	(6,435)
Gains on disposals of property, plant and equipment	6(19)	(526)	(492)
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net	(	16,695)	(1,971)
Accounts receivable	(	237,454)	(209,426)
Accounts receivable - related parties	(	-	1,342
Other receivables	(	4,720)	(1,108)
Inventories	(	4,965)	(31,841)
Other current assets, others	(	2,212)	4,344
Changes in operating liabilities
Accounts payable	(	72,964	46,434
Accounts payable - related parties	(	39)	7
Other payables	(	4,511)	2,599
Other payables - related parties	(	496)	732
Other current liabilities	(	4,380)	(5,612)
Cash outflow generated from operations	(	230,074)	(291,862)
Interest received	(	5,225	6,435
Interest paid	(	27,375)	(16,937)
Income tax refunded	(	1,356	-
Net cash flows used in operating activities	(	250,868)	(302,364)

(Continued)

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at fair value through other comprehensive income		$ 1,219	$ 3,169
Acquisition of financial assets at amortised cost	6(3)	-	95,201
Acquisition of property, plant and equipment	6(24)	( 51,781 )	( 39,823 )
Proceeds from disposal of property, plant and equipment		526	492
Increase in prepayments for equipment		( 8,382 )	( 3,936 )
Acquisition of intangible assets		-	( 161 )
(Increase) decrease in refundable deposits		( 1,307 )	578
Net cash flows (used in) from investing activities		( 59,725 )	55,520
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	6(25)	887,382	515,338
Repayments of short-term borrowings	6(25)	( 939,201 )	( 430,748 )
Proceeds from long-term borrowings	6(25)	-	100,000
Repayments of long-term borrowings	6(25)	( 60,667 )	( 121,710 )
Proceeds from issuance shares	6(13)	412,500	-
Payments of lease liabilities	6(25)	( 4,497 )	( 2,873 )
Net cash flows from financing activities		295,517	60,007
Effect of change in exchange rates		9,214	27,596
Net decrease in cash and cash equivalents		( 5,862 )	( 159,241 )
Cash and cash equivalents at beginning of year		220,722	379,963
Cash and cash equivalents at end of year		$ 214,860	$ 220,722

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

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UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

History and organization

Uniflex Technology Inc. (the “Company”) and its subsidiaries (collectively referred herein as the “Group”) were incorporated as a Company limited by shares under the provisions of the Group Act of the Republic of China (R.O.C.) on November 19, 1990. The Company is primarily engaged in the manufacturing, processing, and sales of various printed circuit boards and electronic components. On August 19, 1999, the Company merged with Qiaosheng Industrial Co., Ltd.; on June 30, 2006, the Company merged with Shengtai Technology Co., Ltd. and Uniflex Dasheng Electronics Co., Ltd.; on June 30, 2014, the Company merged with Yaan Industrial Co., Ltd., after which the Company operates as a surviving Company. The Company’s ordinary share was listed on the Taiwan Stock Exchange on December 15, 2015.

The date of authorization for issuance of the financial statements and procedures for authorization

These consolidated financial statements were authorized for issuance by the Board of Directors on February 23, 2026.

Application of new standards, amendments and interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

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

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

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

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification and measurement of financial instruments'.

Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board January 1, 2027(Note)
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation into a Hyperinflationary Presentation Currency’	January 1, 2027

Note : The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

IFRS 18, 'Presentation and disclosure in financial statements'

IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. Summary of material accounting policies

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

(b) Financial assets at fair value through other comprehensive income.

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

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

(a) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases

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when the Group loses control of the subsidiaries.

(b) Inter-Group transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

(d) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership(%)
			December 31, 2025	December 31, 2024
The Company	Uniflex Investment Limited	Holding company	100.00%	100.00%
The Company	Uniflex Group Limited	Holding company	100.00%	100.00%
Uniflex Investment Limited	Uniflex Technology (JiangSu) Limited (Uniflex (JiangSu))	Production and sales of flexible printed circuit board	100.00%	100.00%

C. Subsidiaries not included in the consolidated financial statements: None.

D. Adjustments for subsidiaries with different balance sheet dates: None.

E. Significant restrictions:

Cash and short-term deposits of $77,505 deposited in Mainland China are under local foreign exchange control which restricts the capital to be remitted outside the borders (except for normal

dividend distribution).

F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Foreign currency translation

Items included in the consolidated financial statements of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan dollars, which is the Company's functional and the Group's presentation currency.

A. Foreign currency transactions and balances

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

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

(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.

B. Translation of foreign operations

(a) The operating results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognised in other comprehensive income.

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

(5) Classification of current and non-current items

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

(a) Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

(b) Assets that are held primarily for the purpose of trading;

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

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

(a) Liabilities that are expected to be settled in the normal operating cycle;

(b) Liabilities that are held primarily for the purpose of trading;

(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

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

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

(b) The assets’ contractual cash flows represent solely payments of principal and interest.

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B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

(a) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

(8) Financial assets at amortized cost

A. Financial assets at amortized cost are those that meet all of the following criteria:

(a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

(b) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.

D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(9) Accounts and notes receivable

A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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(10) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income and financial assets at amortized cost, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(12) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads allocated based on normal operating capacity. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

(13) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

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

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. 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 must be depreciated separately.

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D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures	5~50 years
Machinery and equipment	2~7 years
Leased assets	5~10 years
Other facilities	2~5 years

(14) Leasing arrangements (lessee) - right-of-use assets/lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the amount of the initial measurement of lease liability.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

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(15) Intangible assets

Intangible assets, mainly computer software, are stated at cost and amortized on a straight-line basis over its estimated useful life of 10 years.

(16) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

(17) Borrowings

A. Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates.

(18) Accounts and notes payable

A. Notes payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

B. The short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(19) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(20) Offsetting of financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

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(21) Employee benefits

A. Short-term employee benefits

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

B. Pensions

(a) Defined contribution plans

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

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) instead.

ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

C. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(22) Employee share-based payment

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

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to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest.

(23) Income tax

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

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

C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

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

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

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(24) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their carrying amount and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(25) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(26) Revenue recognition

A. The Group manufactures and sells various printed circuit boards and related products of electronic components. Sales are recognized when control of the products has transferred, being when the products are delivered to the wholesaler, the wholesaler has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

B. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(27) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

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5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The related information is addressed below:

(1) Critical judgements in applying the Group's accounting policies

None.

(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of December 31, 2025, the carrying amount of inventories was $252,920.

B. Impairment assessment of tangible assets

The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future.

At December 31, 2025, the Group recognised property, plant and equipment, net of impairment loss, amounting to $380,286.

6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash:
Cash on hand and petty cash	$ 180	$ 151
Checking accounts and demand deposits	123,957	66,124
Time deposits	21,581	38,976
Cash equivalents-repurchased bonds	69,142	115,471
	$ 214,860	$ 220,722

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Group has no cash and cash equivalents pledged to others.

(2) Financial assets measured at fair value through other comprehensive income

Items	December 31, 2025	December 31, 2024
Non-current items:
Equity instruments:
Unlisted stocks	$ 25,666	$ 25,666
Debt instruments:
Corporate bonds	2,857	4,546
	28,523	30,212
Valuation adjustment	(28,523)	(30,212)
	$ -	$ -

A. The Group has elected to classify equity and debt instrument investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. As at December 31, 2024 and 2023, the fair values of such investments were both $0.
B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	2025	2024
Debt instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive income	$ 1,689	$ 4,546

C. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group were both $0.
D. The Group held unsecured convertible bonds issued by the related party, Maruwa Corporation, and the acquisition cost amounted to JPY 30,000 thousand, which had been fully recognised as unrealised losses on financial assets in 2018, and the Group carried out collections starting from April 22, 2024. As at February 23, 2026, the Group had completed negotiations with Maruwa Corporation regarding the repayment schedule of corporate bonds, receiving JPY 20,571 thousand in bond repayments, and further adjusting the valuation of financial assets, The Group recognized other comprehensive loss amounting to $1,689 and $4,546, respectively.
E. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

F. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(3).

(3) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits maturing in excess of three months	$ -	$ -

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

	Year ended December 31
	2025	2024
Interest income	$ 102	$ 672

B. As at December 31, 2025 and 2024 without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group were both $0.

(4) Accounts and notes receivable, net

	December 31, 2025		December 31, 2024
	Non-related party	Related party	Non-related party	Related party
Notes receivable	$ 25,823	$ -	$ 9,128	$ -
Accounts receivable	$ 1,113,371	$ -	$ 875,917	$ -
Less: Allowance for uncollectible accounts	( 1,271)	-	( 1,597)	-
	$ 1,112,100	$ -	$ 874,320	$ -

A. The aging analysis of accounts and notes receivable that were past due but not impaired is as follows:

	December 31, 2025		December 31, 2024
	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
Not past due	$ 1,112,283	$ 25,823	$ 873,400	$ 9,128
Up to 30 days	1,088	-	1,540	-
31 to 90 days	-	-	709	-
91 to 180 days	-	-	1	-
Over 181 days	-	-	267	-
	$ 1,113,371	$ 25,823	$ 875,917	$ 9,128

The above aging analysis was based on past due date.

B. As at December 31, 2025 and 2024, accounts and notes receivable were all from contracts with customers. And as of January 1, 2024, the balance of accounts receivable (including related parties) and notes receivable from contracts with customers amounted to $674,990.

C. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's notes and accounts receivable (including related parties) was $25,823 and $9,128; $1,112,100 and $874,320, respectively.

D. Information relating to credit risk of accounts and notes receivable is provided in Note 12(3).

(5) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 105,621	($ 11,201)	$ 94,420
Work in progress	75,215	( 13,326)	61,889
Finished goods	138,059	( 50,213)	87,846
Merchandise	9,675	( 910)	8,765
	$ 328,570	$ (75,650)	$ 252,920
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 111,727	($ 9,400)	$ 102,327
Work in progress	98,952	( 27,801)	71,151
Finished goods	139,839	( 57,066)	82,773
Merchandise	1,671	( 37)	1,634
	$ 352,189	($ 94,304)	$ 257,885

The cost of inventories recognized as expense for the year:

	Year ended December 31
	2025	2024
Cost of goods sold	$ 2,057,917	$ 1,910,511
(Gain on reversal of) loss on decline in market value	( 18,289)	11,300
Scrap loss	11,132	17,829
Revenue from sale of scraps	( 56,416)	( 49,435)
Low capacity utilization	19,753	31,026
	$ 2,014,097	$ 1,921,231

For the years ended December 31, 2025 and 2024, the Group actively handled the loss on decline in market value and slow-moving inventory, resulting in a gain from price recovery..

(6) Property, plant and equipment

At January 1

Cost

Accumulated depreciation and impairment

Opening net book amount as at January 1

Additions

Transfers

Depreciation charge

Net exchange differences

Closing net book amount as at December 31

At December 31

Cost

Accumulated depreciation and impairment

2025

Land	Buildings and structures	Machinery and equipment	Construction in progress	Others	Total
$ 132,495	$ 782,272	$ 1,851,310	$ 4,549	$ 178,164	$ 2,948,790
-	( 605,178)	( 1,774,265)	-	( 164,636)	( 2,544,079)
$ 132,495	$ 177,094	$ 77,045	$ 4,549	$ 13,528	$ 404,711
$ 132,495	$ 177,094	$ 77,045	$ 4,549	$ 13,528	$ 404,711
-	7,062	40,582	2,463	5,270	55,377
-	-	3,518	( 1,814)	335	2,039
-	( 35,369)	( 37,644)	-	( 9,751)	( 82,764)
-	52	824	-	47	923
$ 132,495	$ 148,839	$ 84,325	$ 5,198	$ 9,429	$ 380,286
$ 132,495	$ 790,079	$ 1,825,295	$ 5,198	$ 178,790	$ 2,931,857
-	( 641,240)	( 1,740,970)	-	( 169,361)	( 2,551,571)
$ 132,495	$ 148,839	$ 84,325	$ 5,198	$ 9,429	$ 380,286

	2024
	Land	Buildings and structures	Machinery and equipment	Construction in progress	Others	Total
At January 1
Cost	$132,495	$766,969	$1,793,370	$928	$178,208	$2,871,970
Accumulated depreciation and impairment	-	(565,636)	(1,708,901)	-	(157,448)	(2,431,985)
	$132,495	$201,333	$84,469	$928	$20,760	$439,985
Opening net book amount as at January 1	$132,495	$201,333	$84,469	$928	$20,760	$439,985
Additions	-	7,356	34,260	5,389	1,603	48,608
Transfers	-	896	3,824	(1,770)	-	2,950
Depreciation charge	-	(35,111)	(46,729)	-	(9,164)	(91,004)
Net exchange differences	-	2,620	1,221	2	329	4,172
Closing net book amount as at December 31	$132,495	$177,094	$77,045	$4,549	$13,528	$404,711
At December 31
Cost	$132,495	$782,272	$1,851,310	$4,549	$178,164	$2,948,790
Accumulated depreciation and impairment	-	(605,178)	(1,774,265)	-	(164,636)	(2,544,079)
	$132,495	$177,094	$77,045	$4,549	$13,528	$404,711
A. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.
B. As of December 31, 2025 and 2024, the amount prepaid by the Group for the purchase of equipment amounted to $8,386 and $3,935, respectively (listed as ‘Prepayments for equipment’ in the balance sheet of non-current assets).

(7) Leasing arrangements—lessee

A. The Group leases various assets including land, buildings (including land) and transportation equipment. Rental contracts are typically made for periods of 1 to 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

B. The lease period for rental properties and machinery and equipment leased by the company does not exceed 12 months. For the years ended December 31, 2025 and 2024, payments of lease commitments for short-term leases amounted to $5,553 and $6,190, respectively.

C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

| | December 31, 2025
Carrying amount | December 31, 2024
Carrying amount |
| --- | --- | --- |
| Land | $ 8,117 | $ 8,350 |
| Buildings (including land) | 48,424 | 2,510 |
| Transportation equipment (business vehicles) | 95 | 381 |
| | $ 56,636 | $ 11,241 |
| | Year ended December 31 | |
| | 2025 | 2024 |
| | Depreciation charge | Depreciation charge |
| Land | $ 254 | $ 264 |
| Buildings (including land) | 4,535 | 2,453 |
| Transportation equipment (business vehicles) | 286 | 297 |
| | $ 5,075 | $ 3,014 |

D. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $50,449 and $571, respectively.

E. The information on profit and loss accounts relating to lease contracts is as follows:

	Year ended December 31
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 867	$ 80
Expense on short-term lease contracts	5,553	6,190
Expense on leases of low-value assets	114	131

F. For the years ended December 31, 2025 and 2024, the Group's total cash outflow for leases were $11,031 and $9,274, respectively.

~37~

(8) Short-term borrowings

Type of borrowings	December 31, 2025	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 89,768	2.45%~3.00%	None
Secured borrowings	279,148	2.90%~3.00%	Right-of-use assets, land and plant
	$ 368,916
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 115,000	2.46%~2.90%	None
Secured borrowings	300,095	2.54%~3.30%	Right-of-use assets, land and plant
	$ 415,095

The Group has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate
Expiring within one year	$ 420,776	$ 158,904

(9) Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses payable	$ 78,068	$ 92,185
Mold expense payable	23,685	26,753
Payable on machinery and equipment	16,541	12,945
Outsourcing expense payable	12,026	5,237
Repairs and maintenance expense payable	12,432	15,808
Import and export expenses payable	13,718	10,623
Others	68,073	62,852
	$ 224,543	$ 226,403

(10) Long-term borrowings

	December 31, 2025	December 31, 2024
Bank secured borrowings	$ 299,333	$ 360,000
Less: current portion	( 78,941)	( 59,167)
	$ 220,392	$ 300,833
Interest rate range	2.48%~2.63%	2.48%~2.63%

A. In August 2021, the Group signed a twelve-year credit contract with The Shanghai Commercial & Savings Bank, Ltd., Chung Li Branch (SCSB), with a total amount of NT$300,000 actually allocated from August 2021 to purchase machinery and auxiliary facilities and supplement the medium-term working capital.

B. In February 2023, the Group obtained a long-term financing of $50,000 and $30,000 from Chailease Finance Co., Ltd. and CDC Finance and Leasing Corp. by way of repurchasing of inventory after sales, respectively. The contract periods both were 2 years, and monthly matured notes were issued for repayment from March 2023. On February 26, 2024, the Group fully repaid the above-mentioned borrowings from Chailease Finance Co., Ltd. and CDC Finance and Leasing Corp.

C. In March 2023, the Group obtained a long-term financing both of $50,000 from Robina Finance & Leasing Corp. By way of repurchasing of inventory after sales, respectively. The contract period was 2 years, and monthly maturing notes were issued for repayment from April 2023. On March 12, 2024, the Group fully repaid the above-mentioned borrowings from Robina Finance & Leasing Corp.

D. In March 2023, the Group obtained a long-term financing of $20,000 from CTBC Finance Co., Ltd. by way of repurchasing of machine after sales. The contract period was 2 years, and monthly matured notes were issued for repayment from April 2023. On March 8, 2024, the Group fully repaid the borrowings from CTBC Finance Co., Ltd.

E. In May 2024, the Group signed a three-year credit contract with The Shanghai Commercial & Savings Bank, Ltd., Chung Li Branch (SCSB), with an amount of NT$100,000, and actually allocated in May 2024 to purchase machinery and equipment and auxiliary facilities and supplement the medium-term working capital.

(11) Pensions

A. The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering foreign employees who meet the Mid-Level skill worker standard under the Labor Standards Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. The Group contributes monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March. The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2025 and 2024 were $17 and $13, respectively.

~39~

B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount not less than 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2025 and 2024 were $10,050 and $10,879, respectively.

C. Pension plans of consolidated subsidiaries:

Uniflex Technology (JiangSu) has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. Other than the monthly contributions, Uniflex Technology (JiangSu) has no further obligations. The pension costs under defined contribution pension plans of Uniflex Technology (JiangSu) for the years ended December 31, 2025 and 2024, were $31,556 and $30,127, respectively. The other subsidiaries have no employees.

(12) Share-based payment (For the year ended December 31, 2024 : None)

A. For the year ended December 31, 2025, the Group's share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted	Contract period	Vesting conditions
Cash capital increase reserved for employee preemption	2025.12.19	3,148 thousand shares	NA	Vested immediately

B. The fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement	Grant date	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Fair value per unit (in dollars)
Cash capital increase reserved for employee preemption	2025.12.19	$ 17.70	$ 12.5	58.80%	0.003 year	-	1.0880%	$ 5.20

C. Expenses incurred on share-based payment transactions are shown below:

Year ended December 31
	2025	2024
Equity-settled	$ 16,370	$ -

(13) Share capital

A. As of December 31, 2025, the Company's authorized capital was $4,500,000, consisting of 450,000 thousand shares of ordinary share, and the paid-in capital was $861,138 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number of the Company’s ordinary shares outstanding are as follows:

Unit: in thousand shares

	Year ended December 31
	2025	2024
At January 1	$ 97,160	$ 97,160
Capital reduction to offset accumulated deficits	( 44,046)	-
Cash capital increase	33,000	-
At December 31	$ 86,114	$ 97,160

B. To improve the financial structure and offset accumulated deficits, the shareholders at their annual shareholders’ meeting on May 22, 2025 adopted a resolution to reduce capital by 44,046 thousand shares with a capital reduction ratio of 45.33%. The effective date of capital reduction was set on June 24, 2025, and the capital reduction case had been registered.

C. The Board of Directors during its meeting on February 24, 2025 adopted a resolution to increase the Company’s capital by issuing 33,000 thousand ordinary shares with a par value of $10 (in dollars) per share and a price of NT$12.5 (in dollars) per share. The effective date of capital increase was set on December 26, 2025, and the capital increase case had been registered on February 6, 2026.

(14) Capital surplus

A. Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of ordinary shares and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

B. The shareholders during its meeting on June 27, 2024, adopted a resolution to the deficit compensation plan for the year 2023, has been approved, with losses being offset by utilizing a capital reserve of $39,007.

~41~

(15) Retained earnings/(accumulated deficit)

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve; however this is not required if total legal reserve equals total paid-in capital. After setting aside a special reserve in accordance with related laws and competent authority, the appropriation of the remaining earnings, along with the accumulated unappropriated earnings, shall be retained or distributed resolved by the shareholders.

B. The Company’s dividend policy is summarized below: The Company shall, in consideration of the Company's business environment and dividend distribution policy, take into account the Company’s current and future investment environment, capital needs, domestic and foreign competition, and capital budget and other factors, along with shareholders’ interests and the balance between dividends and long-term financial plans of the Company. Pursuant to existing regulations, the Board of Directors prepares an earnings distribution proposal every year and submits it to the shareholders for approval. Issuance of dividends to shareholders, of which dividends paid in cash are 10% to 100% of the total dividend and dividends paid in stocks are 0% to 90% of the total dividend.

C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Group’s paid-in capital.

D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

(b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

E. It was resolved by the shareholders' meeting of the Company on May 22, 2025 and June 27, 2024, respectively, to not distribute dividends to shareholders because the after-tax losses for the years ended December 31, 2024 and 2023.

~42~

~43~

(16) Operating revenue

The main business of the Group is the manufacturing, processing and sale of various printed circuit boards, which can be classified in a single product category. The Group derives revenue from the transfer of goods and services over time and at a point in time in the following geographical regions:

	Year ended December 31
	2025	2024
Taiwan	$ 490,827	$ 438,631
Mainland China	1,654,202	1,527,509
	$ 2,145,029	$ 1,966,140

(17) Interest income

	Year ended December 31, 2025	Year ended December 31, 2024
Interest income from bank deposits	$ 1,897	$ 2,342
Interest income from financial assets measured at amortised cost	102	672
Other interest income	3,108	3,421
	$ 5,107	$ 6,435

(18) Other income

	Year ended December 31
	2025	2024
Government grants income	$ 8,938	$ 12,961
Other income - others	2,478	5,730
	$ 11,416	$ 18,691

(19) Other gains and losses

	Year ended December 31
	2025	2024
Foreign exchange (losses) gains	($ 15,935)	$ 24,525
Gains on disposals of property, plant and equipment	526	492
Others	( 537)	( 1,890)
	($ 15,946)	$ 23,127

(20) Expenses by nature

| By function
By nature | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operation costs | Operation expenses | Total | Operation costs | Operation expenses | Total |
| Employee benefit expense | $ 586,333 | $ 169,236 | $ 755,569 | $ 570,093 | $ 163,816 | $ 733,909 |
| Depreciation charges on property, plant and equipment (including right-of-use assets) | 84,404 | 3,435 | 87,839 | 89,865 | 4,153 | 94,018 |
| Amortization charges on intangible assets | 252 | 525 | 777 | 520 | 947 | 1,467 |

(21) Employee benefit expense

	Year ended December 31
	2025	2024
Wages and salaries	$ 623,721	$ 608,795
Labour and health insurance fees	47,340	46,192
Pension costs	41,623	41,019
Directors’ remuneration	2,000	1,975
Other personnel expenses	40,885	35,928
	$ 755,569	$ 733,909

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors' remuneration. The ratio shall be 1% to 20% for employees' compensation and shall not be higher than 2% for directors' remuneration. If the Company still has accumulated loss, it shall be used to cover the loss first. In the aforementioned amount of employees' remuneration, the ratio shall be 1% to 20% reserved for rank-and-file employees.

B. For the years ended December 31, 2025 and 2024, the Company did not accrue employees' compensation and directors' remuneration due to the loss before tax. Information about employees' compensation and directors' remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(22) Income tax

A. Income tax expense

(a) Components of income tax expense:

	Year ended December 31
	2025	2024
Current tax:
Current tax on profits for the year	$ -	$ -
Deferred tax:
Origination and reversal of temporary differences	7,934	5,678
Income tax expense	$ 7,934	$ 5,678

(b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

	Year ended December 31
	2025	2024
Currency translation differences	$ 425	$ 4,414

B. Reconciliation between income tax expense and accounting profit

	Year ended December 31
	2025	2024
Tax calculated based on loss before tax and statutory tax rate	($ 34,440)	($ 40,561)
Effect of amount disallowed by tax regulation	( 13,232)	( 1,925)
Taxable loss not recognised as deferred tax assets	47,672	43,296
Temporary difference not recognised as deferred tax assets	7,934	4,868
Income tax expense	$ 7,934	$ 5,678

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

	2025
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	December 31
Deferred tax assets:
- Temporary difference:
Allowance for bad debts	$ 14,353	($ 5,908)	$ -	$ 8,445
Allowance for inventory valuation losses	11,671	( 4,128)	-	7,543
Currency translation differences	8,880	-	( 425)	8,455
Unrealized sales discounts and allowances	294	( 152)	-	142
Unrealized exchange losses	-	1,872	-	1,872
	$ 35,198	($ 8,316)	($ 425)	$ 26,457
- Deferred tax liabilities:
Unrealized exchange gains	($ 382)	$ 382	$ -	$ -
	($ 382)	$ 382	$ -	$ -
	$ 34,816	($ 7,934)	($ 425)	$ 26,457
	2024
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	December 31
Deferred tax assets:
- Temporary difference:
Allowance for bad debts	$ 19,361	($ 5,008)	$ -	$ 14,353
Allowance for inventory valuation losses	12,592	( 921)	-	11,671
Currency translation differences	13,294	-	( 4,414)	8,880
Unrealized sales discounts and allowances	281	13	-	294
	$ 45,528	($ 5,916)	($ 4,414)	$ 35,198
- Deferred tax liabilities:
Unrealized exchange gains	($ 620)	$ 238	$ -	($ 382)
	($ 620)	$ 238	$ -	($ 382)
	$ 44,908	($ 5,678)	($ 4,414)	$ 34,816

D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

December 31, 2025

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2016	$ 239,013	$ 239,013	$ 47,803	2026
2017	196,298	196,298	39,260	2027
2018	274,009	274,009	54,802	2028
2019	376,896	376,896	75,379	2029
2020	342,680	342,680	68,536	2030
2021	170,012	170,012	34,002	2031
2022	263,477	263,477	52,695	2032
2023	419,424	419,424	83,885	2033
2024 (Filed)	240,630	240,630	48,126	2034
2025 (Estimated)	263,385	263,385	52,677	2035

December 31, 2024

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2016	$ 239,013	$ 239,013	$ 47,803	2026
2017	196,298	196,298	39,260	2027
2018	274,009	274,009	54,802	2028
2019	376,896	376,896	75,379	2029
2020	342,680	342,680	68,536	2030
2021	170,012	170,012	34,002	2031
2022	263,477	263,477	52,695	2032
2023	419,424	419,424	83,885	2033
2024 (Estimated)	213,154	213,154	42,631	2034

E. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

Deductible temporary differences	December 31, 2025	December 31, 2024
	$ 90,812	$ 96,293

F. The Company's income tax returns through 2023 have been assessed and approved by the Tax Authority.

(23) Loss per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Loss per share (in dollars)
Basic and diluted loss per share
Loss attributable to ordinary shareholders of the parent	($ 180,132)	53,656	($ 3.36)
	Year ended December 31, 2024
	Amount after tax	Retrospective adjustment to weighted average number of ordinary shares outstanding (share in thousands)	Loss per share (in dollars)
Basic and diluted loss per share
Loss attributable to ordinary shareholders of the parent	($ 208,482)	53,114	($ 3.93)

Considering the impact of the capital reduction to offset company losses, the Company has made retrospective adjustments in the calculation of loss per share. The record date for capital reduction was June 24, 2025. Refer to Note 6(13) for details.

(24) Supplemental cash flow information

Investment activities with partial cash payments:

	Year ended December 31
	2025	2024
Purchase of property, plant and equipment	$ 55,377	$ 48,608
Add: Opening balance of payable on equipment	12,945	4,160
Less: Ending balance of payable on equipment	( 16,541)	( 12,945)
Cash paid during the year	$ 51,781	$ 39,823

(25) Changes in liabilities from financing activities

	2025
	Short-term borrowings	Long-term borrowings	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 415,095	$ 360,000	$ 2,973	$ 778,068
Changes in cash flow from financing activities	( 51,819)	( 60,667)	( 4,497)	( 116,983)
Impact of changes in foreign exchange rate	5,640	-	-	5,640
Changes in other non-cash items	-	-	50,449	50,449
At December 31	$ 368,916	$ 299,333	$ 48,925	$ 717,174
	2024
---	---	---	---	---
	Short-term borrowings	Long-term borrowings	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 322,667	$ 381,710	$ 5,003	$ 709,380
Changes in cash flow from financing activities	84,590	( 21,710)	( 2,873)	60,007
Impact of changes in foreign exchange rate	7,838	-	-	7,838
Changes in other non-cash items	-	-	843	843
At December 31	$ 415,095	$ 360,000	$ 2,973	$ 778,068

Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Group
Unimicron Technology Corp. (Unimicron)	The parent company of the Company's corporate director
Unimicron-FPC Technology (KunShan) Inc. (Unimicron-FPC)	Unimicron's subsidiary
Advance Materials Corporation	Unimicron is a director of the company
Maruwa Corporation (Maruwa)	Investee held by the Unimicron's second-tier subsidiary
Directors, independent directors, general managers and deputy general managers, etc.	Directors and key management of the Company

(2) Significant related party transactions

A. Operating revenue

	Year ended December 31
	2025	2024
Sales of goods:
Other related parties	$ 439	$ 3,317
Related parties with a significant impact on the Group	-	30
	$ 439	$ 3,347

The transaction price of the Group’s sales to the above-mentioned related parties are approximate to those for third parties, and the collection terms are 90 to 120 days after monthly billings.

B. Operating costs

	Year ended December 31
	2025	2024
Purchase of goods:
Other related parties	$ -	$ 35
Related parties with a significant impact on the Group	-	10
	$ -	$ 45
	Year ended December 31
	2025	2024
Processing cost:
Other related parties	$ 657	$ 715
Related parties with a significant impact on the Group	199	2,250
	$ 856	$ 2,965

The transaction price of the Group’s purchase and processing cost from the above-mentioned related parties are approximate to those for third parties, and the payment terms are 120 days after monthly billings.

C. Payables to related parties

	December 31, 2025	December 31, 2024
Accounts payable:
Others related parties	$ -	$ 39
Other payables:
Others related parties	$ 469	$ 71
Related parties with a significant impact on the Group	264	1,158
	$ 733	$ 1,229

D. Prepayments:

	December 31, 2025	December 31, 2024
Related parties with a significant impact on the Group	$ 5,188	$ -

E. Property transactions

Acquisition of property, plant and equipment

	Year ended December 31
	2025	2024
Related parties with a significant impact on the Group	$ -	$ 298

F. Other non-current assets, others

	December 31, 2025	December 31, 2024
Guarantee deposits paid:
Related parties with a significant impact on the Group	$ 70	$ 70

This represents a security deposit for a property lease.

G. Lease transactions-lessee

(a) The Group leases the office from Unimicron Technology Corp. Rental contracts are typically made for periods from 2023 to 2028. Rents are paid on the 10th of the following month.

(b) Lease liabilities

(i) Outstanding balance:

	December 31, 2025	December 31, 2024
Related parties with a significant impact on the Group	$ 907	$ 1,254

(ii) Interest expense

	December 31, 2025	December 31, 2024
Related parties with a significant impact on the Group	$ 20	$ 27

(3) Key management compensation

	Year ended December 31
	2025	2024
Short-term employee benefits	$ 9,490	$ 11,377

~52~

8. Pledged Assets

The Group's assets pledged as collateral are as follows:

Pledged asset	Book value		Nature of pledge
	December 31, 2025	December 31, 2024
Property, plant and equipment			Guaranteed borrowings
- Land	132,495	132,495	line
- Building	125,957	156,190	"
Right-of-use asset	8,117	8,350	"

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:

	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 22,362	$ 22,716

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

A. On February 23, 2026, the Board of Directors of the Company proposed that no surplus will be distributed due to the after-tax loss for the year ended December 31, 2025. As of February 23, 2026, the proposal of the deficit compensated for the year 2025 has not yet been approved by the shareholders.

B. To meet its funding requirements, the Group obtained a one-year credit facility from Taiwan Cooperative Bank in the amount of 70,000 thousand, which was approved by the Board of Directors on February 23, 2026.

C. To meet its funding requirements, the Group obtained a one-year credit facility from Bank of Jiangsu in the amount of RMB 60,000 thousand, which was approved by the Board of Directors on February 23, 2026.

12. Others

(1) Strategies to improve operational and financial conditions

By adjusting the product portfolio and discontinuing the loss-making products, the Group will focus on the development of new technologies and diversify high-margin products in the future, and actively control operating costs and expenses, streamline the organization and staff, and reduce various expenses to enhance the Group's profitability.

(2) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(3) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortised cost:
Cash and cash equivalents	$ 214,860	$ 220,722
Notes receivable	25,823	9,128
Accounts receivable (including related parties)	1,112,100	874,320
Other receivables	13,851	10,604
Guarantee deposits paid	17,732	6,305
	$ 1,384,366	$ 1,121,079
Financial liabilities
Financial liabilities at amortised cost:
Short-term borrowings	$ 368,916	$ 415,095
Accounts payable (including related parties)	469,423	396,498
Other payables	224,543	226,403
Long-term borrowings (including current portion)	299,333	360,000
	$ 1,362,215	$ 1,397,996
Lease liability	$ 48,925	$ 2,973

B. Financial risk management policies

(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Risk management is carried out by a central financial department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

~53~

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Group and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

ii. Management has set up a policy to require Group to manage their foreign exchange risk against their functional currency.

iii. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.

iv. The Group’s businesses involve some non-functional currency operations (the Group’s functional currency: NTD; other certain subsidiaries’ functional currency: USD and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 17,893	31.42	$ 562,198
USD:RMB	27	6.9884	848
JPY:NTD	21,204	0.2007	4,256
Financial liabilities
Monetary items
USD:NTD	2,733	31.42	85,871
USD:RMB	2,570	6.9884	80,749
RMB:NTD	3,806	4.4960	17,112

~54~

~55~

	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 16,707	32.78	$ 547,655
USD:RMB	133	7.3170	4,360
JPY:NTD	15,346	0.2101	3,224
Financial liabilities
Monetary items
USD:NTD	1,572	32.78	51,530
USD:RMB	2,843	7.3170	93,194
RMB:NTD	2,953	4.4800	13,229

v. The total exchange gain, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to ($15,935) and $24,525, respectively.

vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:

	Year ended December 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	$ 5,622	$ -
USD:RMB	1%	8	-
JPY:NTD	1%	43	-
Financial liabilities
Monetary items
USD:NTD	1%	859	-
USD:RMB	1%	807	-
RMB:NTD	1%	171	-

	Year ended December 31, 2024
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	$ 5,477	$ -
USD:RMB	1%	44	-
JPY:NTD	1%	32
Financial liabilities
Monetary items
USD:NTD	1%	515	-
USD:RMB	1%	932	-
RMB:NTD	1%	132	-

Price risk

i. The Group's equity securities, which are exposed to price risk, are the held financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

ii. The Group's investments in equity securities comprise shares issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, other components of equity would have increased/decreased by $257, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group has short-term borrowings with floating interest rates. Due to the borrowings period is short, it is predicted that there will be no significant market risks.

ii. The Group's interest rate risk mainly arising from long-term borrowings issued at variable rates expose the group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. During 2025 and 2024, the Group's borrowings at variable rate were mainly denominated in New Taiwan dollars.

iii. If the borrowing interest rate of New Taiwan dollars had increased/decreased by 0.1% with all other variables held constant, profit before tax for the years ended December 31, 2025 and 2024 would have increased/decreased by $299 and $360, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at fair value through other comprehensive income.

ii. The Group manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions that conduct transactions, only those with an investment grade or higher can be accepted as trading partners. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by general manager. The utilization of credit limits is regularly monitored. The major credit risk comes from the credit risk of wholesale and retail customers and includes receivables that have not yet been collected.

iii. The Group adopts the assumptions under IFRS 9, if the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

iv. The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.

v. The Group classifies customers’ accounts receivable in accordance with credit rating of customer. The Group applies the simplified approach to estimate expected credit loss under the provision matrix basis.

vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;

(ii) The disappearance of an active market for that financial asset because of financial difficulties;

(iii) Default or delinquency in interest or principal repayments.

~57~

vii. The Group used the forecastability of Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of accounts receivable (Including related parties). On December 31, 2025 and 2024, the provision matrix is as follows:

	Not past due	Up to 30 days past due	31 to 90 days past due	91 to 180 days past due	Over 180 days past due	Total
December 31, 2025
Expected loss rate	0.03%~5%	0.03%~20%	0.03%~20%	0.03%~20%	100%
Total book value	$ 1,112,283	$ 1,088	$ -	$ -	$ -	$ 1,113,371
Loss allowance	$ 1,271	$ -	$ -	$ -	$ -	$ 1,271
	Not past due	Up to 30 days past due	31 to 90 days past due	91 to 180 days past due	Over 180 days past due	Total
December 31, 2024
Expected loss rate	0.03%~5%	0.03%~20%	0.03%~20%	0.03%~20%	100%
Total book value	$ 873,400	$ 1,540	$ 709	$ 1	$ 267	$ 875,917
Loss allowance	$ 1,097	$ 90	$ 142	$ 1	$ 267	$ 1,597

viii. For the years ended December 31, 2025 and 2024, movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

	2025
	Accounts receivable
At January 1	$	1,597
Reversal of impairment loss	(	337)
Effect of foreign exchange		11
At December 31	$	1,271
	2024
	Accounts receivable
At January 1	$	1,796
Reversal of impairment loss	(	217)
Effect of foreign exchange		18
At December 31	$	1,597

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs. Such forecasting takes into consideration of the Group's financial ratio targets and external regulatory and legal requirements.

ii. Surplus cash held by the operating entities over and above balance required for working capital management will be invested in interest bearing current accounts, time deposits and other cash equivalents, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

iii. The Group has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate
Expiring within one year	$ 420,766	$ 158,904

iv. The table below analyses the Group’s non-derivative financial liabilities and net settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

December 31, 2025	Less than 1 year	Between 1 year and 5 years	Over 5 years
Non-derivative financial liabilities:
Short-term borrowings	$ 372,270	$ -	$ -
Accounts payable (including related parties)	469,423	-	-
Other payables (including related parties)	224,543	-	-
Lease liability	7,544	26,764	22,845
Long-term borrowings (including current portion)	86,454	163,825	94,894
December 31, 2024	Less than 1 year	Between 1 year and 5 years	Over 5 years
Non-derivative financial liabilities:
Short-term borrowings	$ 419,154	$ -	$ -
Accounts payable (including related parties)	396,498	-	-
Other payables (including related parties)	226,403	-	-
Lease liability	2,044	1,051	-
Long-term borrowings (including current portion)	68,227	220,155	133,272

(4) Fair value information

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

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

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 input of assets or liabilities.

B. Financial instruments not measured at fair value including the carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, short-term borrowings, accounts payable and other payables are approximate to their fair values.

C. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2025 and 2024 are as follows:

(a) The related information of the natures of the assets and liabilities is as follows:

(There was no such transaction on December 31, 2025 and December 31, 2024, respectively.)

(b) The methods and assumptions the Group used to measure fair value are as follows:

i. When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

ii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

~60~

iii. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo simulation.

iv. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

D. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Please refer to table 1.

B. Provision of endorsements and guarantees to others: None.

C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): None.

D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 2.

E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.

F. Significant inter-Group transactions during the reporting periods: Please refer to table 4.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 5.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 6.

B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area:

(a) Purchase amount and percentage and ending balance and percentage of payables: Please refer to Note 13(1)D.

(b) Sales amount and percentage and ending balance and percentage of receivables: Please refer to Note 13(1)D.

(d) Balance and purpose of provision or endorsements/guarantees or collaterals at December 31, 2025: None.

~61~

(e) Maximum balance, ending balance and interest rate range and total amount of interest during the year ended and at December 31, 2025: None.

(f) Other significant transactions that affected the gains and losses or financial status for the period, i.e. rendering/receiving of service: None.

14. Operating Segment Information

(1) General information

The Group operates business only in a single industry. The Board of Directors who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment

(2) Measurement of segment information

The operating segment’s accounting policies are in agreement with the significant accounting policy summarized in Note 4 of the consolidated financial statements. The Group’s chief operating decision-maker assesses the performance based on the net operating profit.

(3) Segment Information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

	Year ended December 31,
	2025	2024
Revenue from external customers	$ 2,145,029	$ 1,966,140
Segment loss	($ 145,849)	($ 233,956)
Segment income, including depreciation and amortization	$ 88,616	$ 95,485

(4) Reconciliation for segment income (loss)

Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

A reconciliation of reportable segment income or loss to the income/(loss) before tax from continuing operations for the years ended December 31, 2025 and 2024 is provided as follows:

	Year ended December 31,
	2025	2024
Reportable segments loss	($ 145,849)	($ 233,956)
Unappropriated amount:
Non-operating income and expenses	( 26,349)	31,152
Loss before tax from continuing operations	($ 172,198)	($ 202,804)

(5) Information on products and services

The Company and its consolidated subsidiaries are engaged in manufacturing, process and sales of multi-layer and flexible printed circuit, which is the only single type of product.

(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31,
	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$ 490,827	$ 331,030	$ 438,631	$ 307,400
China	1,654,202	132,479	1,527,509	120,059
	$ 2,145,029	$ 463,509	$ 1,966,140	$ 427,459

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31,
	2025		2024
	Revenue	Percentage of the account	Revenue	Percentage of the account
A company	$ 652,259	30%	$ 547,886	28%
D company	354,474	17%	577,503	29%

Uniflex Technology Inc. and subsidiaries

Loans to others

Year ended December 31, 2025

Table 1

Expressed in thousands of NTD

(Except as otherwise indicated)

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended 31-Dec-25	Balance at December 31, 2025	Actual amount drawn down	Interest rate	Nature of loan (Note 2)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral Item	Value	Limit on loans granted to a single party (Note 3)	Ceiling on total loans granted (Note 3)	Footnote
1	Uniflex Investment Limited.	UNIFLEX TECHNOLOGY INC.	Other receivables	Yes	$ 2,493	$ 2,361	$ -	When the interest rates are drawn based on the actual loaned facility, the market interest rates will be adjusted flexibly.	2	$ -	Working capital	$ -	None	$ -	2,471,476	3,089,345

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1)The Company is '0'.

(2)The subsidiaries are numbered in order starting from '1'.

Note 2: Fill in the nature of the loan as follows:

(1)Business transaction is labelled as "1".

(2)Short-term financing is labelled as "2".

Note 3: The calculation of the capital loans of the Company and its subsidiaries and the individual items and the total amount shall be in accordance with the "Procedures for Provision of Loans" stipulated by the Company and its subsidiaries.

For the companies having business relationship with the Company, financial limit on total loans shall not exceed the amount of business transactions occurred between the creditor and borrower in the most recent year.

For the companies having business relationship with the Company, financial limit on loans granted to a single party shall not exceed the amount of business transactions occurred between the creditor and borrower in the most recent year.

Limit on loans to a single party with business transactions is the higher value of purchasing and selling during current year on the year of financing.

For short-term financing, the ceiling on total loans granted does not exceed $40\%$ of the creditors' net assets, limit on loans granted to a single party should not exceed $40\%$ of the Company's net assets.

For the foreign companies which the Company holds $100\%$ of the voting rights directly or indirectly, limit on total loans shall not exceed $500\%$ of the Company's net assets. For the foreign companies which the Company holds $100\%$ of the voting rights directly or indirectly, limit on loans granted to a single party is $500\%$ of the Company's net assets.

Note 4: The facility approved by the Board of Directors was consistent with the actual loaned facility.

Uniflex Technology Inc. and subsidiaries

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

Year ended December 31, 2025

Table 2
Expressed in thousands of NTD
(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes and accounts receivable (payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales) (%)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable) (%)
UNIFLEX TECHNOLOGY INC.	Uniflex Technology (JiangSu) Limited	The Company's second-tier subsidiary	Purchase	$ 460,458	56	Collection of payments based on capital needs	Note 1	Note 1	($ 387,970)	(	75)
Uniflex Technology (JiangSu) Limited	UNIFLEX TECHNOLOGY INC.	The Company's parent company	(Sales)	( 460,458)	( 33)	Collection of payments based on capital needs	Note 1	Note 1	387,970	39

Note 1: The transaction price is negotiated by both parties, and the terms of collection and payment are determined according to the Company's capital needs.

Table 2, Page 1

Uniflex Technology Inc. and subsidiaries

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

Year ended December 31, 2025

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Uniflex Technology (JiangSu) Limited	UNIFLEX TECHNOLOGY INC.	Parent company of the Company	$ 387,970	1.03	$ -	-	$ 65,668

Table 3, Page 1

Uniflex Technology Inc. and subsidiaries

Significant inter-company transactions during the reporting periods

Year ended December 31, 2025

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
1	Uniflex Technology (JiangSu) Limited	UNIFLEX TECHNOLOGY INC.	2	Sales revenue	$ 460,458	Collect or payment according to the financial needs	21.47%
1	Uniflex Technology (JiangSu) Limited	UNIFLEX TECHNOLOGY INC.	2	Accounts receivable	387,970	"	18.13%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount base on period-end of consolidated total operating revenues for income statement accounts.

Table 4, Page 1

Uniflex Technology Inc. and subsidiaries

Information on investees

Year ended December 31, 2025

Table 5
Expressed in thousands of NTD
(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership	Book value
UNIFLEX TECHNOLOGY INC.	Uniflex Investment Limited	British Virgin Islands	Holding Company	$ 989,730	$ 989,730	22,517	100%	$ 617,869	$ 794	$ 794	Note 1.2
UNIFLEX TECHNOLOGY INC.	Uniflex Group Limited	British Virgin Islands	Holding Company	10,765	10,765	1,100	100%	-	-	-	Note 1

Note 1: It is recognized based on the evaluation for financial statements audited by the parent company's CPAs in Taiwan.

Table 5, Page 1

Uniflex Technology Inc. and subsidiaries

Information on investments in Mainland China

Year ended December 31, 2025

Table 6
Expressed in thousands of NTD
(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2025		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 2)	Book value of investments in Mainland China as of December 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Unipoint Technology (KunShan) Corp.	Manufacture and sale of electronic parts	$ 38,018	(3)	$ 7,541	$ -	$ -	$ 7,541	$ -	19.83	$ -	$ -	$ -	Note 2
Uniflex Technology (JIANGSU) Limited	Production and sales of FPC	942,600	(2)	822,618	-	-	822,618	1,016	100.00	1,016	615,514	-	Note 3
Company name		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025		Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)		Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Uniflex Technology Inc.		$ 1,053,212		$ 1,053,212		Note 4

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China. (invested companies in third regions: Uniflex Investment Limited and Uniflex Group Limited)
(3) Others

Note 2: It has been assessed that it is impossible for Unipoint Technology(KunShan) Corp. to actually operate, and the Company has recognized the full amount as an investment loss.

Note 3: Uniflex (JiangSu) is recognized based on the evaluation for financial statements audited by the parent company's CPAs in Taiwan.

Note 4: The Company met the scope of operation made by the headquarters, thus, no limit was applicable on the Company's investments in Mainland China in accordance with "Regulations Governing the Permission of Investment or Technical Cooperation in Mainland Area" effective August 1, 2008.

Table 6, Page 1

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UNIFLEX — Audit Report / Information 2025

52315_rns_2026-06-08_9aba2c37-2cf3-4a80-af6f-aed4b590b7ca.pdf

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

Representation Letter

Opinion

Basis for opinion

Key audit matters

Valuation of allowance for inventory valuation losses

Description

How our audit addressed the matter

Impairment assessment of property, plant and equipment

Description

How our audit addressed the matter

Other matter - Parent company only financial reports

Responsibilities of management and those charged with governance for the consolidated financial statements

Auditor's responsibilities for the audit of the consolidated financial statements

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

UNIFLEX TECHNOLOGY INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

4. Summary of material accounting policies

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

6. Details of Significant Accounts

(16) Operating revenue

(17) Interest income

(18) Other income

(19) Other gains and losses

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

10. Significant Disaster Loss

11. Significant Events after the Balance Sheet Date

12. Others

Price risk

Cash flow and fair value interest rate risk

13. Supplementary Disclosures

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

14. Operating Segment Information

(1) General information

(2) Measurement of segment information

(3) Segment Information

(4) Reconciliation for segment income (loss)

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UNIFLEX Audit Report / Information 2025