UNITECH — Audit Report / Information 2024

Dec 2, 2024

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Stock Code:2367

Unitech Printed Circuit Board Corporation

Parent Company Only Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2024 and 2023

Address: No. 3, Lane 4, Zhongshan Road, Tucheng District, New Taipei City Telephone: (02)2268-5071

The independent auditors’ report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent company only financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Financial Statements (1) Company history (2) Approval date and procedures of the financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information 9. List of major account titles

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Unitech Printed Circuit Board Corporation:

Opinion

We have audited the financial statements of Unitech Printed Circuit Board Corporation(“the Company”), which comprise the balance sheet as of December 31, 2024 and 2023, the statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the report of other auditors (please refer to Other Matter paragraph), the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In our professional judgments, key audit matters to communicated in the independent auditor’s report is listed below:

1. Evaluation of Inventories

Please refer to note 4(g) “Inventories”, note 5 “Significant accounting assumptions and judgments, and major sources of estimation uncertainty- Evaluation of inventories” , and note 6(d) “ Inventories” of the financial statements.

Description of key audit matter:

Inventories are measured by the lower cost and net realizable value accounting. Due to the rapid change of terminal product market, the clients’ intention about placing and changing orders for products could be affected. Furthermore, it also resulted in a risk in which the carrying value of inventories may be higher than its net realizable value, and caused the obsolete stock. Therefore, the valuation of inventories is one of the key audit matters for our audit.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

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How the matter was addressed in our audit:

Our principal audit procedures included: Evaluating the rationality of the policy of making provision to inventories impairment, evaluating the assumption of allowance for inventory valuation of the authorities, and the situation of obsolescence of inventory that has happened in prior periods; confirming whether the Company has undertaken the inventory valuation based on the policy; inspecting the inventory aging report and analyzing the difference in the inventory aging in comparison to prior periods. Understanding and evaluating the management’ s judgment on the calculation of the net realizable value; testing the appropriateness of the inventory valuation, evaluating the management’s calculations of allowance for inventory loss to ensure their appropriateness and considering the adequacy of the Company’ s disclosures in allowance for inventory valuation.

Other Matter

The Company’ s investee companies were accounted for by using the equity method based on its financial statements which were audited by other auditors. Our opinion, insofar as it relates to the Company’s investee companies are based solely on the report of other auditors. As of December 31, 2024 and 2023, the total assets of investee companies which constituted 4.48% and 4.79% of the Company’s total assets, respectively. For the years ended December 31, 2024 and 2023, the profit or loss of subsidiaries and affiliated companies accounted for by using the equity method which constituted 0.31% and 25.31% of the income (loss) which the Company recognized before income tax, respectively.

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

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

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

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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:

1. Identify and assess the risks of material misstatement of the 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.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on this financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Horng, Shyh-Gang and Hsu, Ming-Fang.

KPMG

Taipei, Taiwan (Republic of China) March 14, 2025

Notes to Readers

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

The auditors’ report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and parent company only financial statements, the Chinese version shall prevail.

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(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation

Balance Sheets

December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1170 Accounts receivable, net (notes 6(c) and (r)) 1180 Accounts receivable-related parties (notes 6(r) and 7) 1200 Other receivables 1210 Other receivables-related parties (note 7) 1220 Current tax assets 1310 Inventories (note 6(d)) 1410 Prepayments 1476 Other financial assets-current 1479 Other current assets Total current assets Non-current assets: 1517 Financial assets at fair value through other comprehensive income non- current (notes 6(b) and 7) 1550 Investments accounted for using equity method, net (note 6(f)) 1600 Property, plant and equipment (notes 6(g), (t) and 8) 1755 Right-of-use assets (note 6(h)) 1780 Intangible assets (note 6(i)) 1840 Deferred tax assets (note 6(n)) 1915 Prepayments for business facilities 1920 Refundable deposits (note 8) 1990 Other non-current assets Total non-current assets Total assets	December 31, 2024 Amount % $ 855,566 4 4,400,611 21 9,793 - 29,687 - 663 - 3,005 - 2,064,540 10 53,419 - 4,789 - 10,909 - 7,432,982 35 295,830 2 6,400,848 30 6,584,218 31 72,450 - 102,833 1 226,787 1 17,886 - 36,514 - 8,865 - 13,746,231 65 $ 21,179,213 100	December 31, 2023 Amount % 246,084 1 3,724,337 20 21,604 - 30,208 - 637 - 1,474 - 1,931,177 10 45,601 - 3,295 - 8,706 - 6,013,123 31 339,660 2 5,423,222 29 6,589,971 35 239,948 1 123,484 1 256,185 1 10,906 - 59,424 - 11,061 - 13,053,861 69 19,066,984 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (notes 6(j) and 8) 2170 Accounts payable 2180 Accounts payable-related parties (note 7) 2200 Other payables 2220 Other payables-related parties (note 7) 2280 Current lease liabilities (note 6(l)) 2322 Current portion of long-term borrowings (notes 6(k) and 8) 2399 Other current liabilities (note 7) Total current liabilities Non-Current liabilities: 2540 Long-term borrowings (notes 6(k) and 8) 2570 Deferred tax liabilities (note 6(n)) 2580 Non-current lease liabilities (note 6(l)) 2640 Net defined benefit liability, non-current (note 6(m)) Total non-current liabilities Total liabilities Equity(note 6(o)): 3110 Ordinary share 3200 Capital surplus Retained earnings: 3310 Legal reserve 3350 Unappropriated retained earnings Total retained earnings Other equity: 3410 Exchange differences on translation of foreign financial statements 3420 Unrealized gains (losses) from financial assets at fair value through other comprehensive income 3445 Gains (losses) on remeasurements of defined benefit Total other equity Total equity Total liabilities and equity	December 31, 2024	December 31, 2024		December 31, 2023 Amount % 420,000 2 1,510,572 8 1,234,071 7 841,216 5 1,853 - 80,374 - 648,120 3 8,730 - 4,744,936 25 4,021,200 21 171,517 1 163,366 1 141,963 - 4,498,046 23 9,242,982 48 6,694,072 35 3,035,358 16 347,938 2 (171,815) (1) 176,123 1 (22,349) - 178,921 1 (238,123) (1) (81,551) - 9,824,002 52 19,066,984 100
			Amount	%

See accompanying notes to parent company only financial statements.

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(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation

Statements of Comprehensive Income

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Common Share)

4000 Operating revenue, net(notes 6(r) and 7) 5110 Cost of sales(notes 6(d), (i), (l), (m), 7 and 12) Gross profit from operations Operating expenses(notes 6(c), (i), (l), (m), (p), (s), 7 and 12): 6100 Selling expenses and administrative expenses 6300 Research and development expenses 6450 Expected credit loss Total operating expenses Net operating profit (loss) Non-operating income and expenses(notes 6(e), (g), (l), (t) and 7): 7100 Interest income 7010 Other income 7020 Other gains and losses, net 7050 Finance costs, net 7070 Share of profit of subsidiaries accounted for using equity method, net Total non-operating income and expenses Profit (loss) from continuing operations before tax 7950 Less: Income tax expense (income) (note 6(n)) Profit (loss) 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans (note 6(m)) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income of subsidiaries accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss Items that may not be reclassified subsequently to profit or loss 8360 Items that may be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements Items that may be reclassified subsequently to profit or loss 8300 Other comprehensive income (after tax) Comprehensive income Earnings (loss) per share (NT dollars)(note 6(q)) Basic earnings (loss) per share Diluted earnings (loss) per share (NT dollars) Diluted earnings (loss) per share	2024 Amount % $ 17,562,300 100 14,742,562 84 2,819,738 16 1,491,387 9 61,167 - 11,596 - 1,564,150 9 1,255,588 7 18,580 - 71,052 - 132,481 1 (137,387) (1) 284,550 2 369,276 2 1,624,864 9 37,074 - 1,587,790 9 (27,209) - (63,663) - 5,279 - (85,593) - 270,399 1 270,399 1 184,806 1 $ 1,772,596 10 $ 2.36 $ 2.36	2023 Amount % 13,930,979 100 13,380,436 96 550,543 4 1,241,658 9 60,502 - 10,402 - 1,312,562 9 (762,019) (5) 17,139 - 65,817 - 233,240 2 (122,372) (1) 221,877 2 415,701 3 (346,318) (2) (2,077) - (344,241) (2) (867) - (221,340) (2) (42,108) - (264,315) (2) (89,192) (1) (89,192) (1) (353,507) (3) (697,748) (5) (0.51) (0.51)

See accompanying notes to parent company only financial statements.

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(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation

Statements of Changes in Equity

For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2023 Loss Other comprehensive income Comprehensive income Appropriation and distribution of retained earnings: Legal reserve Cash dividends on ordinary share Other changes in capital surplus: Other changes in capital surplus Changes in equity of associates accounted for using equity method Balance at December 31, 2023 Profit Other comprehensive income Comprehensive income Appropriation and distribution of retained earnings: Legal reserve used to offset accumulated deficits Other changes in capital surplus: Other changes in capital surplus Capital increase by cash Changes in equity of associates accounted for using equity method Share-based payments Balance at December 31, 2024	Ordinary shares		Capital surplus		Retained earnings	Retained earnings	Retained earnings		Total other equity interest	Total other equity interest	Total other equity interest	Total other equity interest	Total other equity interest	Total equity 10,724,363 (344,241) (353,507) (697,748) - (200,822) 114 (1,905) 9,824,002 1,587,790 184,806 1,772,596 - 169 1,037,400 25,590 19,800 12,679,557
					Legal reserve		Unappropriated retained earnings		Exchange differences on translation of foreign financial statements		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Gains (losses) on remeasurements of defined benefit
	$ 6,694,072 - - - - - - - 6,694,072 - - - - - 400,000 - - $ 7,094,072		3,037,149		306,606		413,712		66,843		443,927		(237,946) - (177) (177) - - - - (238,123) - (26,864) (26,864) - - - - - (264,987)
			- -		- -
			-		-
					41,332 - - -
					347,938
					- -
					-

See accompanying notes to parent company only financial statements.

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(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation

Statements of Cash Flows

For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit (loss) before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Share-based payments Share of profit of subsidiaries accounted for using equity method Loss on disposal of property, plant and equipment Gain on disposal of non-current assets held for sale Other items Total adjustments to reconcile profit Changes in operating assets and liabilities: Accounts receivable Accounts receivable-related parties Other receivables Other receivables-related parties Inventories Prepayments Other current assets Other financial assets-current Accounts payable Accounts payable-related parties Other payables Other payables-related parties Other current liabilities Net defined benefit liabilities Total changes in operating assets and liabilities Total adjustments	2024 $ 1,624,864 1,040,047 28,218 11,596 137,387 (18,580) 19,800 (284,550) 7,094 - (4) 941,008 (687,870) 11,811 576 (26) (133,363) (8,196) (2,203) (1,494) 145,072 (2,214) 313,253 (303) (279) (11,364) (376,600) 564,408	2023 (346,318) 1,152,008 27,779 10,402 122,372 (17,139) - (221,877) 407 (200,629) (15,072) 858,251 219,743 (1,229) 6,650 (94,478) 251,253 8,347 1,996 455 (128,151) (81,745) (82,904) (899) (38,706) (53,367) 6,965 865,216

See accompanying notes to parent company only financial statements.

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(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation

Statements of Cash Flows

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition from financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Proceeds from disposal of non-current assets classified as held for sale Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Acquisition of intangible assets (Increase) decrease in other non-current assets Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Decrease in short-term borrowings Increase in short-term notes and bills payable Decrease in short-term notes and bills payable Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits received Payment of lease liabilities Cash dividends Capital increase by cash Net cash flows used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

See accompanying notes to parent company only financial statements.

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(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation

Notes to the Financial Statements

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Unitech Printed Circuit Board Corporation (the “Company”) was incorporated on December 31, 1984, with registered address of No. 3, Lane 4, Zhongshan Road, Tucheng District, New Taipei City, Taiwan, as a company limited by shares under the Company Act of the Republic of China (R.O.C.). The major business activities of the Company are the design, manufacture and sale of PCB.

(2) Approval date and procedures of the financial statements:

The Parent company financial statements was authorized for issue by the Board of Directors on March 14, 2025.

(3) New standards, amendments and interpretations adopted:

• (a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2024:

• ●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• ●Amendments to IAS 1 “Non-current Liabilities with Covenants”

• ●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

• ●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

• (b) The impact of IFRS issued by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its financial statements:

• ●Amendments to IAS21 “Lack of Exchangeability”

(Continued)

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Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations IFRS 18 “Presentation and Disclosure in Financial Statements”

Content of amendment Effective date per IASB The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities. January 1, 2027

• ●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.

• ●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• ●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

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Unitech Printed Circuit Board Corporation Notes to the Financial Statements

The Company is evaluating the impact on its financial position and financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• ●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

• ●Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

• ●Annual Improvements to IFRS Accounting Standards—Volume 11

• ●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(4) Summary of material accounting policies:

The material accounting policies presented in the financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the financial statements.

• (a) Statement of compliance

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

• (b) Basis of preparation

• (i) Basis of measurement

Except for the following significant accounts, the financial statements have been prepared on a historical cost basis:

• 1) Financial assets at fair value through other comprehensive income are measured at fair value;

• 2) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note 4(q).

• (ii) Functional and presentation currency

The functional currency of each Company entity is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(Continued)

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Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(c) Foreign currencies

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Company entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

An investment in equity securities designated as at fair value through other comprehensive income;

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

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

The Company classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

(Continued)

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Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Company classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

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

(e) Cash and cash equivalents

Cash comprises cash on hand, demand deposits and time deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(f) Financial Instruments

Accounts receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

• (i) Financial assets

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

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – equity investment. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(Continued)

13

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• 1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

• 2) Fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’ s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Company’s right to receive payment is established.

• 3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

(Continued)

14

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• 4) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized cost, notes and accounts receivable, other receivables and refundable deposits).

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

• The credit risk of bank deposits (e.g. the risk of default occurring beyond the expected duration of the financial instruments) has not increased significantly since the original recognition.

Loss allowances for trade receivables is always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company’ s historical experience and informed credit assessment as well as forwardlooking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.

The Company considers a financial asset to be in default when the financial asset is more than one year past due or the debtor is unlikely to pay its credit obligations to the Company in full.

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECL are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘ credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

• significant financial difficulty of the borrower or issuer;

• a breach of contract such as a default or being more than 90 days past due;

• the lender of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

(Continued)

15

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• it is probable that the borrower will enter bankruptcy or other financial reorganization ； or

• the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

• 5) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

• (ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

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

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

(Continued)

16

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

3) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

4) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

5) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

• (h) Non-current assets held for sale

On March 3, 2023, the Company’ s board of directors resolved to sell certain land, plant and equipment. Therefore, the Company has applied the accounting policy related to non current assets held for sale from January 1, 2023 onwards.

(Continued)

17

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Non-current assets or disposal groups comprising assets and liabilities that are highly probable to be recovered primarily through sale rather than through continuing use, are reclassified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group, are remeasured in accordance with the Company’s accounting policies. Thereafter, generally, the assets or disposal groups are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to assets not within the scope of IAS 36 – Impairment of Assets. Such assets will continue to be measured in accordance with the Company’s accounting policies.

Impairment losses on assets initially classified as held for sale and any subsequent gains or losses on remeasurement are recognized in profit or loss. Gains are not recognized in excess of the cumulative impairment loss that has been recognized.

Once classified as held for sale, property, plant and equipment are no longer amortized or depreciated.

(i) Investment in associates

Associates are those entities in which the Company has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The financial statements include the Company’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual proportionate share.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated Company’s interests in the associate.

When the Company’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

• (j) Investment in subsidiaries

When preparing the financial statements of Parent company, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries.

(Continued)

18

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Changes in a Parent’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within equity.

• (k) Property, plant and equipment

• (i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

• (ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

• (iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1)	Buildings and constructions	15~55 years
2)	Machinery equipment	3~12 years
3)	Office equipment	3-5 years
4)	Other equipment	3-5 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(l) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(Continued)

19

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• (i) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• 1) fixed payments, including in-substance fixed payments;

• 2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• 3) amounts expected to be payable under a residual value guarantee; and

• 4) payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• 1) there is a change in future lease payments arising from the change in an index or rate; or

• 2) there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or

• 3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or

• 4) there is a change of its assessment on whether it will exercise an extension or termination option; or

• 5) there is any lease modification

(Continued)

20

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for shortterm leases of office equipment that have a lease term of 12 months or less and leases of lowvalue assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Company applies IFRS15 to allocate the consideration in the contract.

The Company recognizes a finance lease receivable at an amount equal to its net investment in the lease. Initial direct costs, such as lessors to negotiate and arrange a lease, are included in the measurement of the net investment. The interest income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the lease. The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other income’.

(Continued)

21

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(m) Intangible assets

(i) Recognition and measurement

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

• (iii) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

• 1) Computer software 5~10 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(n) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

(Continued)

22

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(o) Revenue recognition

Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’ s main types of revenue are explained below.

(i) Sale of goods

The Company design, manufacture and sale PCB. The Company recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’ 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 customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

(ii) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(p) Government grants

The Company recognizes an unconditional government grant related to salary and operations in profit or loss as operating revenue when the grant becomes receivable. Grants that compensate the Company for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

(Continued)

23

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(q) Employee benefits

• (i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

• (ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(Continued)

24

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(r) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant-date fair value of the sharebased payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities, over the period during which the employees become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the share appreciation rights. Any changes in the liability are recognized in profit or loss. The grant-date for stock-based compensation of the Company is the date on which the board of directors approves the subscription price and authorizes the employees to receive stock options.

(s)

Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction (i) affects neither accounting nor taxable profits (losses) and (ii) does not give rise to equal taxable and deductible temporary differences;

• (ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (iii) Taxable temporary differences arising on the initial recognition of goodwill.

(Continued)

25

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(t) Earnings per share

The Company discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, such as employee compensation.

• (u) Operating segments

The Company discloses the operating segment information in the consolidated financial statement. Therefore, the Company does not disclose the operating segment information in the parent-companyonly financial statements.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparing these financial statements, management has made judgments, and estimates about the future, including climate-related risks and opportunities that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

(Continued)

26

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

Judgement of whether the Company has substantive control over its investees

The Company and subsidiaries hold 11.70% of the outstanding voting shares of Fulltech Fiber Glass Corp. and is the single largest shareholder of the investee. Although the remaining 88.30% of Fulltech Fiber Glass Corp.’s shares are not concentrated within specific shareholders, the Company still cannot obtain more than half of the total number of Fulltech Fiber Glass Corp.’s directors, and it also cannot obtain more than half of the voting rights at a shareholders’ meeting. Therefore, it is determined that the Company has significant influence on Fulltech Fiber Glass Corp.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows:

Evaluation of inventories

Since inventory must be measured at the lower of cost and net realizable value, the Company assesses the amount of inventory due to normal wear and tear, obsolescence, or no market sales value on the reporting date, and offsets the inventory cost to net realizable value. This inventory evaluation is mainly based on the estimated product demand in a specific period in the future, so there may be major changes due to rapid changes in the industry. Please note 6(d) for detailed inventory evaluation and estimation.

The Company’s accounting policies include measuring financial and non-financial assets and liabilities at fair value. The Company has established an internal control framework with respect to the measurement of fair value and regularly reviews significant unobservable inputs and valuation adjustments. If third-party information, such as broker quotes or pricing services, is used to measure fair value, then the Company assessed the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRSs, including the level in the fair value hierarchy in which such valuations should be classified.

The Company strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

• (a) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• (b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• (c) Level 3: inputs for the assets or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to note 6(u) for assumptions used in measuring fair value.

(Continued)

27

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(6) Explanation of significant accounts

• (a) Cash and cash equivalents

Cash and cash equivalents
Cash in stock Bank deposits Time deposits	December 31, 2024 $ 611 756,600 98,355 $ 855,566	December 31, 2023
		696 245,388 -
		246,084

Please refer to note 6(u) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Company.

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

Domestic listed common shares	December 31, 2024 $ 295,830	December 31, 2023
		339,660

• (i) Equity investments at fair value through other comprehensive income

The Company designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Company intends to hold for long-term strategic purposes.

There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments for the years ended December 31, 2024 and 2023.

• (ii) For credit risk (including the impairment of debt investments) and market risk, please refer to note 6(u).

• (iii) As of December 31, 2024 and 2023 the financial assets at fair value through other comprehensive income of the Company had not been pledged.

• (c) Accounts receivable

Accounts receivable Less: Loss allowance	December 31, 2024 $ 4,424,665 (24,054) $ 4,400,611	December 31, 2023 3,736,795 (12,458) 3,724,337

(Continued)

28

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all accounts receivable. To measure the expected credit losses, accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward-looking information, including that of macroeconomic and relevant industry information. The loss allowance provisions were determined as follows:

Current 1 to 90 days past due 91 to 180 days past due More than 181 days past due Current 1 to 90 days past due 91 to 180 days past due More than 181 days past due	December 31, 2024	December 31, 2024
	Gross carrying amount Weighted-average loss rate $ 4,067,582 0.04% 330,770 1.05% 9,359 22.97% 16,954 99.63% $ 4,424,665 December 31, 2023		Loss allowance provision
			1,554 3,459 2,150 16,891
			24,054
		Weighted-average loss rate 0.04% 1.37% 30.04% 98.86%	Loss allowance provision
			1,489 4,782 4,622 1,565
			12,458

The movement in the allowance for accounts receivable were as follows:

Balance at January 1 Impairment losses recognized Balance at December 31	For the years ended December 31	For the years ended December 31
	2024 $ 12,458 11,596 $ 24,054	2023
		2,056 10,402
		12,458

As of December 31, 2024 and 2023, accounts receivable of the Company had not been pledged.

(Continued)

29

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(d) Inventories

Raw materials and supplies Work in progress Finished goods Merchandise inventory Allowance to reduce inventory to market value	December 31, 2024 $ 229,509 1,132,669 576,465 240,291 2,178,934 (114,394) $ 2,064,540	December 31, 2023 223,704 987,616 542,694 327,302 2,081,316 (150,139) 1,931,177

For the years ended December 31, 2024 and 2023, the Company recognized the cost of sales of $15,038,391 thousand and $13,606,364 thousand, respectively.

The details of the cost of sales were as follow:

Gain on valuation of inventories Revenue from sales of scraps	2024 $ (35,745) (260,084) $ (295,829)	2023 (36,451) (189,477) (225,928)

As of December 31, 2024 and 2023, inventories of the Company had not been pledged.

(e) Non-current assets held for sale

On March 13, 2023, the Company entered into a sales and purchase agreement with an outside buyer to dispose its idle plants and dormitories in Yilan, for a total contract price of $677,078 thousand, based on a resolution approved during its board meeting held on March 3, 2023. The above transaction was completed in May, 2023, resulting in a gain on disposal of $200,629 thousand to be recognized as other gains and losses.

(f) Investments accounted for using equity method

A summary of the Company’s financial information for investments accounted for using the equity method at the reporting date is as follows:

Subsidiaries	December 31, 2024 $ 6,400,848	December 31, 2023
		5,423,222

(i) Subsidiaries

Please refer to Consolidated Financial statements, 2024.

(Continued)

30

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(ii) Guarantee

As of December 31, 2024 and 2023, investments accounted as collateral for its borrowings of the Company had not been pledged.

(g) Property, plant, and equipment

The cost, depreciation and impairment of the property, plant and equipment of the Company for the years ended December 31, 2024 and 2023, were as follows:

Cost or deemed cost: Balance at January 1, 2024 Disposals Reclassification Balance at December 31, 2024 Balance at January 1, 2023 Additions Disposals Reclassification Balance at December 31, 2023 Deprecation and impairments loss: Balance at January 1, 2024 Deprecation Disposals Balance at December 31, 2024 Balance at January 1, 2023 Deprecation Reclassification Disposals Balance at December 31, 2023 Carrying Value: Balance at December 31, 2024 Balance at January 1, 2023 Balance at December 31, 2023	Land $ 573,925 768,322 $ 1,342,247 $ 407,228 - - 166,697 $ 573,925 $ - - - $ - $ - - - - $ - $ 1,342,247 $ 407,228 $ 573,925	Buildings and constructions 2,449,638 - 5,318 2,454,956 2,627,083 - - (177,445) 2,449,638 718,693 53,464 - 772,157 827,541 53,449 - (162,297) 718,693 1,682,799 1,799,542 1,730,945	Machinery equipment 12,464,228 (389,389) 213,498 12,288,337 12,173,743 - (155,825) 446,310 12,464,228 9,562,536 661,019 (381,683) 9,841,872 8,998,528 719,359 (155,351) - 9,562,536 2,446,465 3,175,215 2,901,692	Office facilities 332,574 (3,525) 22,505 351,554 318,847 - (6,821) 20,548 332,574 278,706 20,498 (3,519) 295,685 265,296 20,227 (6,817) - 278,706 55,869 53,551 53,868	Other facilities 4,882,317 (5,984) 56,308 4,932,641 4,897,294 - (243,074) 228,097 4,882,317 3,832,464 251,980 (5,079) 4,079,365 3,794,826 280,367 (242,729) - 3,832,464 853,276 1,102,468 1,049,853	Testing equipment 279,688 - (76,126) 203,562 515,829 39,629 - (275,770) 279,688 - - - - - - - - - 203,562 515,829 279,688	Total 20,982,370 (398,898) 989,825
							21,573,297
							20,940,024 39,629 (405,720) 408,437
							20,982,370
							14,392,399 986,961 (390,281)
							14,989,079
							13,886,191 1,073,402 (404,897) (162,297)
							14,392,399
							6,584,218
							7,053,833
							6,589,971

(i) Guarantee

As of December 31, 2024 and 2023, the property, plant and equipment of the Company had been pledged as collateral for short-term, long-term borrowings and credit lines. Please refer to note 8.

(ii) Acquisition of machinery and equipment

For the years ended December 31, 2024 and 2023, the information of the Company acquisition of machinery and equipment were as below:

Capitalization interest rate Capitalized borrowings cost

(Continued)

31

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(h) Right-of-use-assets

The Company leases assets including land, buildings and constructions, office facilities and transportation facilities. Information about leases per which the Company as a lease was represented below:

Cost: Balance at January 1, 2024 Additions Disposals Balance at December 31, 2024 Balance at January 1, 2023 Additions Disposals Balance at December 31, 2023 Accumulated depreciation: Balance at January 1, 2024 Deprecation Disposals Balance at December 31, 2024 Balance at January 1, 2023 Depreciation Disposals Balance at December 31, 2023 Carrying amount: Balance at December 31, 2024 Balance at January 1, 2023 Balance at December 31, 2023	Land $ 269,960 630,696 (900,656) $ - $ 423,642 482,890 (636,572) $ 269,960 $ 132,422 - (132,422) $ - $ 192,545 27,149 (87,272) $ 132,422 $ - $ 231,097 $ 137,538	Buildings and constructions 67,669 5,915 (10,191) 63,393 151,268 64,772 (148,371) 67,669 13,772 29,954 (5,618) 38,108 131,672 29,629 (147,529) 13,772 25,285 19,596 53,897	Office facilities 16,888 1,724 (13,967) 4,645 16,187 701 - 16,888 12,544 4,451 (13,707) 3,288 8,421 4,123 - 12,544 1,357 7,766 4,344	Transportation facilities 55,350 12,673 (15,938) 52,085 48,760 6,993 (403) 55,350 30,180 11,421 (15,398) 26,203 18,491 12,092 (403) 30,180 25,882 30,269 25,170	Other assets 34,343 8,187 (14,132) 28,398 19,696 16,341 (1,694) 34,343 15,344 7,260 (14,132) 8,472 11,208 5,613 (1,477) 15,344 19,926 8,488 18,999	Total 444,210 659,195 (954,884) 148,521 659,553 571,697 (787,040) 444,210 204,262 53,086 (181,277) 76,071 362,337 78,606 (236,681) 204,262 72,450 297,216 239,948

(i) Intangible assets

The information on movement of the intangible assets of the Company for the years ended December 31, 2024 and 2023, was as follows:

Costs: Balance at January 1, 2024 Additions Disposals Balance at December 31, 2024 Balance at January 1, 2023 Additions Disposals Balance at December 31, 2023	Computer Software $ 201,702 6,821 (3,396) $ 205,127 $ 196,160 12,537 (6,995) $ 201,702

(Continued)

32

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Accumulated amortization: Balance at January 1, 2024 Amortization Disposals Balance at December 31, 2024 Balance at January 1, 2023 Amortization Disposals Balance at December 31, 2023 Carrying amount: Balance at December 31, 2024 Balance at January 1, 2023 Balance at December 31, 2023	Computer Software $ 78,218 27,472 (3,396) $ 102,294 $ 58,090 27,123 (6,995) $ 78,218 $ 102,833 $ 138,070 $ 123,484

(i) Amortization

The amortization of intangible assets recognized in the statement of comprehensive income for the years ended December 31, 2024 and 2023 was as follows:

Operating cost Operating expense (j) Short-term borrowings	2024 $ 4,530 $ 22,942	2023
		4,310
		22,813

The short-term borrowings were summarized as follows:

Unsecured bank loans Secured bank loans Total Unused short-term credit lines Range of interest rates	December 31, 2024 $ - - $ - $ 3,850,166 -	December 31, 2023
		270,000 150,000
		420,000
		3,511,747
		1.82%~1.90%

For the collateral for short-term borrowings, please refer to note 8.

(Continued)

33

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(k) Long-term borrowings

The long-term borrowings were summarized as follows:

Unsecured bank loans Secured bank loans Less: current portion Total Unused long-term credit lines Unsecured bank loans Secured bank loans Less: current portion Total Unused long-term credit lines		December 31, 2024 Rate Maturity year Amount 2.42%~2.69% 2026-2027 $ 539,540 2.08%~2.71% 2026~2039 3,555,673 (960,184) $ 3,135,029 $ 2,200,000 December 31, 2023 Rate Maturity year Amount 2.01%~2.55% 2024-2027 $ 361,500 1.95%~2.84% 2026-2028 4,307,820 (648,120) $ 4,021,200 $ 600,000
	Currency	Rate
	TWD TWD
	Currency	Rate
	TWD TWD	2.01%~2.55% 1.95%~2.84%

• (i) Collateral for long-term borrowings

For the collateral for long-term borrowings, please refer to note 8.

• (ii) The details of loans were as follows:

The Company entered into a syndicated credit agreement (hereafter referred to as syndicated credit agreement) with a group of banks leading by Bank of Taiwan on March 27, 2023, the principal contents of which are summarized below:

• 1) The group of banks consists of:

Bank of Taiwan (leading bank, credit facility management bank and secured equity interest management bank), Changhwa Commercial Bank, Taiwan Business Bank, Taiwan Cooperative Bank, First Commercial Bank (the aforementioned banks are the joint leading banks), Land Bank of Taiwan, Mega International Commercial Bank, Taipei Fubon Commercial Bank, Bank SinoPac and The Shanghai Commercial & Savings Bank.

• 2) The total credit facility is NT$3.6 billion to meet the borrower’s repayment of existing financial institution liabilities and to enhance the borrower’ s medium-term working capital.

(Continued)

34

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• 3) The credit duration, the withdrawn period and the settlement method:

• a) This credit duration: five years from the date of first withdrawn (of which credit A includes a grace period of 18 months). The first use of loan by borrower must be before May 20, 2023, otherwise that date shall be deemed to be the first draw up date.

• b) Withdrawn period of this credit:

  • i) Credit A: It is a medium term (secured) loan, and the credit facility amounted to NT$2.4 billion may be withdrawn for multiple times but not on a recurring basis. The withdrawn period of credit A is six months from its first withdrawn, and upon the expiry of the Credit A, the unused Credit A facility is automatically canceled and cannot be used again.

  • ii) Credit B: It is a medium term loan, and the credit facility amounted to NT$1.2 billion may be withdrawn for multiple times and on a recurring basis.

• c) Settlement method:

  • i) Credit A: The first repayment date of this credit shall be the date on which 18 months have elapsed from first withdrawn date, and every six months thereafter shall be deemed as a repayment period, then the credit is amortized in total of eight installments. The principal balance of credit A outstanding at the expiration of withdrawn period shall be evenly repaid in each repayment date.

  • ii) Credit B: To fully settle the principal of credit that has been withdrawn upon its expiration according to the credit period of each loan appropriated and to withdraw the outstanding principal balance on a recurring basis as agreed in this credit. When the outstanding principal balance is used on a recurring basis, the newly appropriated amount shall be able to directly pay for the portion already due.

In any situation, the Company shall fully settle all its outstanding principal, interests and other payables and expenses upon the expiration of this credit.

• 4) Under the syndicated credit agreement, the Company shall provide, during the credit period, the audited annual consolidated financial statements and the consolidated financial statements for the first, second and third quarters as reviewed by the accountants. Restrictions rules on specific financial ratios such as current ratio, debt ratio, interest protection multiplier and tangible net value shall be calculated based on the consolidated annual financial statements audited by the accountants. It shall be inspected one time per year or as often as the management Bank deems necessary.

• 5) The above borrowings are provided by the Company with promissory notes, machinery and equipment, factory and building as collateral for this credit case and the related parties are acting as joint guarantors.

(Continued)

35

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

6) The Company made its first withdrawn on April 28, 2023.

The Company did not violate the above financial ratios and has complied with the relevant contract terms in 2024 and 2023.

(l) Lease liabilities

The carrying values of the Company’s lease liabilities were as follows:

The carrying values of the Company’s lease liabilities were as	follows:
Current Non-current For the maturity analysis, please refer to note 6(u).	December 31, 2024 $ 42,060 $ 33,408	December 31, 2023
		80,374
		163,366

The amounts recognized in profit or loss was as follows:

Interest on lease liabilities Expenses relating to leases of low value assets and short term leases	2024 $ 1,812 $ 5,705	2023
		4,576
		4,512

The amounts recognized in the statement of cash flows for the Company was as follows:

Total cash outflow for leases	2024 $ 60,995	2023
		104,153

• (i) Real estate leases

The Company leases land and buildings for its office space and employee accommodation. The leases of office space and employee accommodation typically run for two to ten years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

The Company expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years.

(ii) Other leases

The Company leases office facilities and transportation facilities, with lease terms of one to four years. In some cases, the Company has options to purchase the assets at the end of the contract term; in other cases, it guarantees the residual value of the leased assets at the end of the contract term.

The Company also leases office facilities and parking space with lease terms of one to four years. These leases are short term or leases of low value items. The Company decides to apply recognition exemptions, and has selected not to recognize right-of-use assets and lease liabilities for these leases.

(Continued)

36

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(m) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

Present value of the defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2024 $ 731,132 (573,324) $ 157,808	December 31, 2023 682,157 (540,194) 141,963

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company’ s Bank of Taiwan labor pension reserve account balance amounted to $573,324 thousand and $540,194 thousand as of December 31, 2024 and 2023, respectively. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

• 2) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Company were as follows:

Defined benefit obligations at January 1 Current service costs and interest cost Remeasurements: －Actuarial loss arising from changes in financial assumptions Benefits paid from plan assets Defined benefit obligations at December 31	2024 $ 682,157 15,603 75,196 (41,824) $ 731,132	2023 695,292 21,289 3,708 (38,132) 682,157

(Continued)

37

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Company were as follows:

Fair value of plan assets at January 1 Interest income Remeasurements: －Return on plan assets (excluding interest income) Contributions from employer Benefits paid from plan assets Fair value of plan assets at December 31	2024 $ 540,194 6,713 47,987 20,254 (41,824) $ 573,324	2023 500,829 8,283 2,841 66,373 (38,132) 540,194

• 4) Movements of the effect of the asset ceiling

There were no movements in the number of impacts of the Company’s defined benefit plan asset ceiling in 2024 and 2023.

• 5) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Company were as follows:

Current service costs Net interest of net liabilities for defined benefit obligations Operating cost Operating expense	2024 $ 7,264 1,626 $ 8,890 2024 $ 2,007 6,883 $ 8,890	2023
		9,510 3,496
		13,006
		2023
		2,956 10,050
		13,006

(Continued)

38

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• 6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increase rate	December 31, 2024 December 31, 2023 % 1.4961 % 1.2224 % 1.0000 % 1.0000

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date is $32,793 thousand.

The weighted average lifetime of the defined benefits plans is 9.28 years.

7)

• Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

December 31, 2024 Discount rate Future salary increasing (decreasing) rate December 31, 2023 Discount rate Future salary increasing (decreasing) rate	Influences of defined benefit obligations Increased 0.25％ Decreased 0.25％ (16,303) 16,851 16,717 (16,251) (16,322) 16,897 16,721 (16,231)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2024 and 2023.

(ii) Defined contribution plans

The Company allocated 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocated a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $128,321 thousand and $123,797 thousand for the years ended December 31, 2024 and 2023, respectively.

(Continued)

39

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(n) Income tax

(i) Income tax expense (income)

The Company of income tax expense (income) were as follows:

Deferred tax expense (income) Origination and reversal of temporary differences Income tax expense (income)	2024 $ 37,074 $ 37,074	2023 (2,077) (2,077)

Reconciliation of income tax expense (income) and profit (loss) before tax for 2024 and 2023 was as follows:

Profit (loss) excluding income tax Income tax using the Company’s domestic tax rate Non-deductible expenses Recognition of previously unrecognized tax losses Current-year losses for which no deferred tax asset was recognized Change in unrecognized temporary differences Share of profit of accounted for using equity method Others Income tax expense (income)	2024 $ 1,624,864 324,973 204 (296,931) - (7,149) (56,910) 72,887 $ 37,074	2023
		(346,318) (69,264) 1,702 - 108,293 (7,290) (44,375) 8,857 (2,077)

(ii) Deferred tax assets and liabilities

• 1) Unrecognized deferred tax liabilities

The Company is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2024 and 2023. Also, management considers it probable that the temporary differences will not reverse in the foreseeable future. Hence, such temporary differences are not recognized under deferred tax liabilities. Details were as follows:

Aggregate amount of temporary differences related to investments in subsidiaries Unrecognized deferred tax liabilities	December 31, 2024 $ 1,810,251 $ 362,050	December 31, 2023 1,529,699 305,940

(Continued)

40

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• 2) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

Tax effect of deductible temporary differences The carryforward of unused tax losses	December 31, 2024 $ 41,384 127,201 $ 168,585	December 31, 2023
		48,533 432,772
		481,305

The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes.

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom.

As of December 31, 2024, the information of the Company’s unused tax losses for which no deferred tax assets were recognized are as follows:

Year of loss	Unused tax loss Expiry date $ 1,265,537 2031 504,404 2033 $ 1,769,941
2021(approved) 2023(declared)

• 3) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2024 and 2023 were as follows:

Deferred Tax Assets: Balance at January 1, 2024 Recognized in profit or loss Balance at December 31, 2024 Balance at January 1, 2023 Recognized in profit or loss Balance at December 31, 2023	Loss carryforward $ 244,787 (18,000) $ 226,787 $ 246,437 (1,650) $ 244,787	Others 11,398 (11,398) - 7,671 3,727 11,398	Total 256,185 (29,398) 226,787 254,108 2,077 256,185

Deferred tax liabilities: Balance at January 1, 2024 Recognized in profit or loss Balance at December 31, 2024 Balance at December 31, 2023 (Balance at January 1, 2023)	Land revalue added revaluation $ 171,517 - $ 171,517 $ 171,517	Other - 7,676 7,676 -	Total
			171,517 7,676
			179,193
			171,517

(Continued)

41

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(iii) The Company’s income tax returns had been examined by the tax authorities through the years to 2022.

(o) Capital and other equity

As of December 31, 2024 and 2023, the number of authorized ordinary shares was 800,000 thousand shares, with a par value of $10 per share, amounting to $8,000,000 thousand. As of those periods, 709,407 thousand and 669,407 thousand ordinary shares were issued, respectively, which were fully paid upon issuance.

(i) Ordinary shares

On August 13, 2024, the Company’s Board of Directors resolved to issue 40,000 thousand ordinary shares, with a par value of $10, totaling $400,000 thousand, and an issuance price of $26 per share. In accordance with Article 267 of the Company Act, 10% of the newly issued shares, amounting to 4,000 thousand shares, were reserved for subscription by the Company’s employees. For share-based payment expenses arising from these employee-reserved shares, please refer to note 6(p). The capital increase was approved by the Financial Supervisory Commission, had the base date set on December 5, 2024. All issued shares were fully paid, and the relevant statutory procedures were since been completed.

(ii) Capital surplus

The balances of capital surplus were as follows:

The balances of capital surplus were as follows:
Additional paid-in capital Changes in equity of investment in subsidiaries and associates accounted for using equity method Unclaimed cash dividend Expired share options	December 31, 2024 $ 3,529,941 180,874 790 6,712 $ 3,718,317	December 31, 2023
		2,879,453 155,284 621 -
		3,035,358

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(iii) Retained earnings

According to the Company’s Article, net earnings should be used to offset the prior year’s deficits, if any, before paying any income taxes. 10% of retained earnings will be as legal reserve. The rest of the amount and undistributed surplus will be allocated on the basis of the allocation plan proposed by the Board of Directors and submitted to stockholders for approval.

(Continued)

42

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Due to demand of expanding business, coordinating with Company’s long-term financial plan for sustainable development and stable economic development, The Company adopts Residual Dividend Policy. The main purpose for this policy is to measure financial demand that based on budget of future capital. The steps of distributions are as below: (1) The best capital budget. (2) Determine the financing required to meet the capital budget in the preceding paragraph. (3) Determine the amount of financing required to be financed by retained surplus (the remaining can be financed by cash increase or corporate bonds). (4) The remaining surplus can be distributed to shareholders in the form of dividends after retaining an appropriate amount according to operational needs. The distribution of future dividends takes into account the use of funds, and draws up an appropriate ratio of cash to stock dividends for the current year, in which cash dividends are 50% to 100%, and stock dividends are 50% to zero.

1) Legal reserve

When a company incurs no loss, it may pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

In accordance with the requirements issued by the FSC, a portion of earnings shall be allocated as special reserve during earnings distribution. An equivalent amount of special reserve shall be allocated from the net profit in the period and the undistributed prior period earnings. A portion of undistributed prior period earnings shall be reclassified to special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to the net reduction of other shareholders’ equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

3) Earnings distribution

The earnings distribution for 2023 was resolved by the general meeting of shareholders held on June 26, 2024. There was no earnings distribution for the year ended December 31, 2023, due to the losses incurred by the Company.

The earnings distribution for 2022 was resolved by the general meeting of shareholders held on June 15, 2023 as follow:

held on June 15, 2023 as follow:
Dividends distributed to ordinary shareholders: Cash	2022
	Amount per share $ 0.30	Total amount
		200,822

(Continued)

43

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(iv) Other comprehensive income accumulated in reserves, net of tax

Balance at January 1, 2024 Exchange differences on foreign operations: The Company Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income: The Company Subsidiary Associate Remeasurement of defined benefits plan: The Company Associate Balance at December 31, 2024 Balance at January 1, 2023 Exchange differences on foreign operations: The Company Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income: The Company Subsidiary Associate Remeasurement of defined benefits plan: The Company Associate Disposal of investments in equity instruments designated at fair value through other comprehensive income: Associate Balance at December 31, 2023	Exchange differences on translation of foreign financial statements $ (22,349) 270,399 - - - - - $ 248,050 Exchange differences on translation of foreign financial statements $ 66,843 (89,192) - - - - - - $ (22,349)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 178,921 - (63,663) 13,690 (8,756) - - 120,192 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 443,927 - (221,340) (13,674) (29,124) - - (868) 178,921	Gains (losses) on remeasurement of defined benefits plan (238,123) - - - - (27,209) 345 (264,987) Gains (losses) on remeasurement of defined benefits plan (237,946) - - - - (867) 690 - (238,123)	Total (81,551) 270,399 (63,663) 13,690 (8,756) (27,209) 345 103,255 Total 272,824 (89,192) (221,340) (13,674) (29,124) (867) 690 (868) (81,551)

(Continued)

44

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(p) Share-based payment

• (i) The information on the Company’s share-based payment in 2024 is as follows:

Grant date Granted amount (in thousand) Contract period Grantee Vesting conditions	2024 First time Capital increase by cash reserved for employee share option
	2024.11.01 4,000 - Employee Immediacy

(ii) Information on the cash increase of employee share option was as follows:

Outstanding amount at January 1 Current grant Current vesting Current expiry Outstanding amount at December 31	2024 Share option amount (in thousand) - 4,000 (2,644) (1,356) -

(iii) Compensation cost

The Company recognized the operating expenses of $19,800 thousand for capital increase by cash reserved for employee stock options for the year ended December 31, 2024. There was no such transaction in 2023.

(Continued)

45

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(q) Earnings (loss) per share

The calculation of basic earnings (loss) per share and diluted earning (loss) per share were as follow:

Basic earnings (loss) per share: Profit (loss) attributable to ordinary shareholders of the Company Weighted average number of ordinary shares (in thousand of shares) Diluted earnings (loss) per share: Profit (loss) attributable to ordinary shareholders of the Company Weighted average number of ordinary shares (basic) (in thousand of shares) Effect of employee share bonus Weighted average number of ordinary shares (diluted) (in thousand of shares)	2024 $ 1,587,790 672,358 $ 2.36 $ 1,587,790 672,358 1,033 673,391 $ 2.36	2023 (344,241) 669,407 (0.51) (344,241) 669,407 - 669,407 (0.51)

There was no potential ordinary shareholders which had diluted for the years ended December 31, 2023.

(r) Revenue from contracts with customers

(i) Details of revenue

Major products/Services lines: 2 Layers 4 Layers 6 Layers 8 Layers More than 10 Layers Others	2024 $ 208,964 1,372,405 2,411,232 5,026,401 8,432,886 110,412 $ 17,562,300	2023
		311,980 1,502,963 2,454,953 3,624,530 5,998,606 37,947
		13,930,979

(Continued)

46

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(ii) Contracts balances

Accounts receivable Accounts receivable-related parties Less: loss allowance	December 31, 2024 $ 4,424,665 9,793 (24,054) $ 4,410,404	December 31, 2023 3,736,795 21,604 (12,458) 3,745,941	January 1, 2023 3,956,538 20,375 (2,056) 3,974,857

Please refer to note 6(c) for the disclosure of notes and accounts receivable and their impairment.

• (s) Employee compensation and directors’ remuneration

In accordance with the articles of incorporation the Company should contribute 1% to 5% of the profit as employee compensation and less than 3% as directors’ remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit.

The Company estimated the remunerations to its employees and directors to be $34,000 thousand and $17,000 thousand, respectively, for the years ended December 31, 2024. These amounts were calculated using the Company’s pre tax income for each period before deducting the remunerations of employees and directors, multiplied by the proposed percentages of remunerations of employees, directors, and supervisors as stated in the Company’s Articles of Incorporation. These remunerations were expensed under operating expenses for the period. If there are any subsequent adjustments to the actual remuneration amounts after the annual shareholders’ meeting, the adjustments will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year.

Due to the loss in 2023, the Company did not accrue any remuneration to its employee and directors. Relevant information can be inquired at the Public Information Observatory.

• (t) Non-operating income and expenses

• (i) Interest income

The details of interest income were as follows:

Interest income from bank deposits Other interest income	2024 $ 18,520 60 $ 18,580	2023
		12,238 4,901
		17,139

(Continued)

47

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(ii) Other income

The details of other income were as follows:

Compensation income Design income Subsidy Other income	2024 $ 9,586 37,530 725 23,211 $ 71,052	2023
		21,283 30,231 982 13,321
		65,817

(iii) Other gains and losses

The details of other gains and losses were as follows:

Foreign exchange gains Gains on lease modification Gains on disposals of non-current assets held for sale Losses on disposals of property, plant and equipment Miscellaneous disbursements	2024 $ 161,632 4 - (7,094) (22,061) $ 132,481	2023 38,849 41 200,629 (407) (5,872) 233,240

(iv) Financial costs

The details of finance costs were as follows:

Interest expense on borrowings Interest expense on lease liabilities Less: interest capitalization	2024 $ 138,735 1,812 (3,160) $ 137,387	2023 123,953 4,576 (6,157) 122,372

(u) Financial instruments

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets represents the maximum amount exposed to credit risk.

2) Concentration of Credit risk

The Company has a large customer base, it has not concentrated on transactions with a single customer. Therefore, there was no concentration of credit risk in its trade receivables. To minimize credit risk, the Company periodically evaluates customers’ financial positions.

(Continued)

48

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

December 31,2024 Non-derivative financial liabilities Accounts payable Accounts payable-related parties Other payables Other payables-related parties Leases liabilities Current portion of long-term borrowings Long-term borrowings Guarantee deposits received December 31,2023 Non-derivative financial liabilities Short-term borrowings Accounts payable Accounts payable-related parties Other payables Other payables-related parties Leases liabilities Current portion of long-term borrowings Long-term borrowings Guarantee deposits received	Carrying amount $ 1,655,644 1,231,857 1,094,472 1,550 75,468 960,184 3,135,029 7,567 $ 8,161,771 $ 420,000 1,510,572 1,234,071 841,216 1,853 243,740 648,120 4,021,200 7,567 $ 8,928,339	Contractual cash flows 1,655,644 1,231,857 1,094,472 1,550 76,619 973,870 3,340,442 7,567 8,382,021 420,951 1,510,572 1,234,071 841,216 1,853 257,672 658,907 4,341,125 7,567 9,273,934	Within 12 months 1,655,644 1,231,857 1,094,472 1,550 42,905 973,870 79,394 7,567 5,087,259 420,951 1,510,572 1,234,071 841,216 1,853 88,167 658,907 105,944 7,567 4,869,248	1-5 years - - - - 33,714 - 3,029,912 - 3,063,626 - - - - - 169,505 - 4,235,181 - 4,404,686	Over 5 years
					- - - - - - 231,136 -
					231,136
					- - - - - - - - -
					-

The Company dose not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

49

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(iii) Currency risk

• 1) Exposure to foreign currency risk

The Company’s significant exposure to foreign currency risk were as follows:

	F	inancial assets: Monetary items USD JPY CNY inancial liabilities: Monetary items USD JPY CNY		December 31, 2024		Foreign currency 114,019 526 93,838 68,755 290,042 46,395	December 31, 2023
			Foreign currency $ 150,106 151 56,177 $ 69,101 2,100 18,825	Exchange rate USD/TWD= 32.79 JPY/TWD= 0.21 CNY/TWD= 4.48 USD/TWD= 32.79 JPY/TWD= 0.21 CNY/TWD= 4.48	TWD		Exchange rate TWD USD/TWD= 30.71 3,500,958 JPY/TWD= 0.22 114 CNY/TWD= 4.33 406,038 USD/TWD= 30.71 2,111,117 JPY/TWD= 0.22 62,997 CNY/TWD= 4.33 200,752
					4,921,212 32 251,561 2,265,463 441 84,298
	F

• 2) Sensitivity analysis

The Company’ s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable (including related parties), other receivables, borrowings, accounts payable (including related parties) and other payables (including related parties) that are denominated in foreign currency. A weakening (strengthening) of 1% of the NTD against the USD, JPY and CNY as of December 31, 2024 and 2023, the net profit before tax in 2024 would have increased (decreased) by $28,226 thousand; the net loss before tax in 2023 would have decreased (increased) by $15,322 thousand. The analysis assumed that all other variables remain constant.

• 3) Foreign exchange gain and loss on monetary items

Since the Company has many kinds of functional currency, the information on foreign exchange gain or loss on monetary items is disclosed by total amount. For the years ended 2024 and 2023, foreign exchange gain (including realized and unrealized portions) amounted to $161,632 thousand and $38,849 thousand, respectively.

(iv) Interest rate risk

Please refer to the notes on liquidity risk management and interest rate exposure of the Company’s financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the Company management’s assessment of the reasonably possible interest rate change.

(Continued)

50

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

If the interest rate had increased or decreased by 1%, the Company’ s net profit before tax would have decreased or increased by $32,235 thousand for 2024, the Company’ s net loss before tax would have increased or decreased by $48,080 thousand for 2023 with all other variable factors remaining constant. This was mainly due to the Company’ s deposits and borrowings at variable rates.

(v) Other market price risk

For the years ended December 31, 2024 and 2023, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Prices of securities at the reporting date Increasing 1% Decreasing 1%	2024 2023 Other comprehensive income after tax Other comprehensive income after tax $ 2,958 3,397 $ (2,958) (3,397)

• (vi) Fair value of financial instruments

• 1) Fair value hierarchy

The financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Company’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost Cash and cash equivalents Accounts receivable, net Accounts receivable-related parties, net Other receivables Other receivables-related parties Other financial asset-current Refundable deposits Subtotal		December 31, 2024	December 31, 2024	December 31, 2024
	Book Value $ 295,830 855,566 4,400,611 9,793 29,687 663 4,789 36,514 $ 5,337,623		Fair value
		Level 1 295,830	Level 2 -	Level 3 Total - 295,830

(Continued)

51

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Financial liabilities measured at amortized cost Borrowings Accounts payable Accounts payable-related parties Other payables Other payables-related parties Lease liabilities Guarantee deposits received Subtotal Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost Cash and cash equivalents Accounts receivable, net Accounts receivable-related parties, net Other receivables Other receivables-related parties Other financial asset-current Refundable deposits Subtotal Financial liabilities measured at amortized cost Borrowings Accounts payable Accounts payable-related parties Other payables Other payables-related parties Lease liabilities Guarantee deposits received Subtotal		December 31, 2024	December 31, 2024	December 31, 2024
	Book Value $ 4,095,213 1,655,644 1,231,857 1,094,472 1,550 75,468 7,567 $ 8,161,771		Fair value
		Level 1 Level 2 Level 3 Total December 31, 2023
	Book Value $ 339,660 246,084 3,724,337 21,604 30,208 637 3,295 59,424 $ 4,085,589 $ 5,089,320 1,510,572 1,234,071 841,216 1,853 243,740 7,567 $ 8,928,339		Fair value
		Level 1 339,660	Level 2 -	Level 3 Total - 339,660

(Continued)

52

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• 2) Valuation techniques for financial instruments measured at fair value

If a financial instrument has a quoted price in an active market, the quoted price is used as fair value. The quoted price of a financial instrument obtained from major exchanges and over-the counter markets are the basis used to determine the fair value of a listed company’s stock and the quoted prices in an active market.

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. If these conditions can not be reached, then the market is non-active. In general, a market with low trading volume or high bid-ask spreads is an indication of a non-active market.

• (v) Financial risk management

• (i) Overview

The Company have exposures to the following risks from its financial instruments:

• 1) credit risk

• 2) liquidity risk

• 3) market risk

The following likewise discusses the Company’ s objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying financial statements.

(ii) Structure of risk management

The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s Audit Committee oversees how management monitors compliance with the Company’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company’s Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(Continued)

53

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(iii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in debt securities.

The main potential credit risk of the Company is derived from financial products, such as accounts receivable, but the main sales target are world-renowned manufacturers. In order to reduce the credit risk, the Company also regularly evaluates the customer’ s operating conditions and the possibility of recovery for period receivables. Because the customer has a large customer base and has a good reputation of profit and credit history, there is no risk of concentration on the credit risk of the company’s accounts receivable.

1) Investments

The finance department of the Company is responsible for measuring and monitoring the credit risk associated with bank deposits, fixed income investments, and other financial instruments. Given that the Company’ s counterparties consist of reputable banks, financial institutions with investment-grade or higher credit ratings, corporate organizations, and government agencies, there are no significant concerns regarding credit risk.

2) Guarantees

The Company’ s policy is to provide financial guarantees only to wholly owned subsidiaries. As of December 31, 2024 and 2023, except for subsidiaries, no other guarantees were outstanding.

(iv) Liquidity risk

The Company manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Company’s management supervises the banking facilities and ensures compliance with the terms of loan agreements.

Loans and borrowings from the bank form an important source of liquidity for the Company. As of December 31, 2024 and 2023, the Company’ s unused credit lines were amounted to $6,050,166 thousand and $4,111,747 thousand, respectively.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Company’ s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Company is exposed to currency risk on sales, purchases, and borrowings that are denominated in a currency other than the respective functional currencies of the Company’s entities, primarily the NTD, also including USD and CNY. The currencies used in these transactions are the NTD, USD and CNY.

(Continued)

54

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

Loan interest is priced in the currency of the principal of the loan. Generally speaking, the currency of the borrowing is the same as the currency of the cash flow generated by the operation of the Company, mainly in the NTD, also including CNY and USD. In this case, economic hedging is provided without the need to sign derivatives, so hedging accounting is not adopted.

Regarding other monetary assets and liabilities denominated in foreign currencies, when short-term imbalance occurs, the Company buys or sells foreign currencies at real-time exchange rates to ensure that the net risk of risk remains at an acceptable level.

2) Interest rate risk

The Company’ s borrowings primarily consist of floating rate debt, which means that changes in market interest rates will lead to fluctuations in the effective interest rate on the borrowings. As a result, there may be variability in future cash flows. The Company does not mitigate its exposure to interest rate fluctuations through the use of interest rate swap contracts.

3) Other market price risk

The Company is exposed to equity price risk due to the investments in equity securities. This is a strategic investment and is not held for trading. The Company does not actively trade in these investments as the management of the Company minimizes the risk by holding different investment portfolios.

(w) Capital management

The board’ s policy is to maintain a strong capital base so as to maintain investor, creditor, and market confidence, and to sustain future development of the business. Capital consists of ordinary shares, capital surplus, retained earnings and non-controlling interests. The board is responsible for overseeing the return on debt-to-equity ratio and simultaneously controls the level of dividends on ordinary shares.

As of December 31, 2024, the Company’s capital management strategy remained consistent with that of the prior year, December 31, 2023. The Company’ s debt-to-equity ratios at the end of the reporting period as of December 31, 2024 and 2023 were as follows:

Total liabilities Less: cash and cash equivalents Net debt Total equity Debt-to-equity ratio	December 31, 2024 $ 8,499,656 (855,566) $ 7,644,090 $ 12,679,557 % 60.29	December 31, 2024 $ 8,499,656 (855,566) $ 7,644,090 $ 12,679,557 % 60.29	December 31, 2023 9,242,982 (246,084) 8,996,898 9,824,002 % 91.58
	$ $ $

(Continued)

55

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(x) Investing and financing activities not affecting current cash flow

Long-term borrowings (including current portion) Short-term borrowings Lease liabilities Guarantee deposits received Total liabilities from financing activities Long-term borrowings (including current portion) Short-term borrowings Lease liabilities Total liabilities from financing activities	January 1,2024 $ 4,669,320 420,000 243,740 7,567 $ 5,340,627 January 1,2023 $ 4,134,940 727,081 315,303 $ 5,177,324	Cash flows (574,107) (420,000) (53,478) - (1,047,585) Cash flows 534,380 (307,081) (95,065) 132,234	Lease payment change - - (114,794) - (114,794) Lease payment change - - 23,502 23,502	December 31, 2024 4,095,213 - 75,468 7,567
				4,178,248
				December 31, 2023 4,669,320 420,000 243,740
				5,333,060

(7) Related-party transactions

(a) Names and relationship with related parties

The followings are entities that have had transactions with related party during the periods covered in the financial statements.

Name of related party

Unitech Electronics International Limited (Unitech BVI)

Da Tai investment Company

Unitech Electronics International Limited (Unitech HK)

Shanghai Unitech Electronics (Nantong) Co., Ltd

Unitech PBC (THAILAND) CO., LTD. (Unitech Thailand)

CHANG, YUAN-MING

Fulltech Fiber Glass Corp.

Ideal Bike Corporation

Unitech Printed Circuit Humanities and Education Foundation

Taiwan Federation of commerce

Taiwan Environmental Sustainable Development Foundation

Relationship with the Group

The subsidiary of The Company

The subsidiary of The Company

The subsidiary of The Company

The subsidiary of The Company

The subsidiary of The Company

President of the company

An associate

The entity’s president is the second immediate family of the president of the Company

The entity’s president is the first immediate family of the president of the Company

The entity’s chairman is the president of the Company

The entity’s president is the first immediate family of the president of the Company

(Continued)

56

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(b) Significant transactions with related parties

(i) The sales and receivables from parties were as follow:

Subsidiary	Sales 2024 2023 $ 52,150 29,485	Receivables-related parties	Receivables-related parties
	2024 $ 52,150	December 31, 2024 9,793	December 31, 2023
			21,604

The payment term offered to related parties is 120 days after the end of the next month, while 30 days to 120 days after month end for the general customers. The prices of the goods sold by the Company to related parties were not significantly different from those of other customers.

(ii) Purchase

The payables to related parties were as follows:

Shanghai Unitech Electronics (Nantong) Co., Ltd	Purchase 2024 2023 $ 3,719,185 3,605,502	Payables-related parties	Payables-related parties
	2024 $ 3,719,185	December 31, 2024 1,231,857	December 31, 2023
			1,234,071

The payment condition to related-parties for the Company is on the basis of their capital. In general, the payment terms of vendors were approximately 90 days. Since the Company did not purchase the identical merchandise from other vendors, price of transactions do not have comparison basis.

• (iii) Cash capital increase in a subsidiary

For the years ended December 31, 2024 and 2023, the Company participated in the cash capital increases of its subsidiary, Unitech Thailand, in the amounts of $391,808 thousand (THB$424,700 thousand) and $67,269 thousand (THB$75,300 thousand), respectively. In 2023, the Company increased the capital of its subsidiary, Unitech BVI, by $283,404 thousand (USD$8,800 thousand) through a debt-to-equity conversion.

(iv) Acquisition of financial assets

In June 2024, the Company participated in the cash capital increase of Ideal Bike Corporation by subscribing shares in proportion to its original shareholding, at a total amount of $19,833 thousand, classified as financial assets at fair value through other comprehensive income noncurrent.

(Continued)

57

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

• (v) Loans and guarantee to Related Parties

For the years ended December 31, 2024 and 2023, the president had provided a guarantee for loans to the Company.

As of December 31, 2024 and 2023, the Company made the endorsement guarantee for its subsidiaries which borrowed money from the financial institution, the amount were $1,490,208 thousand and $1,926,767 thousand, respectively.

• (vi) Loans to Related Parties

The Company provided unsecured loans to its related parties, which bore interest in accordance with contracts entered into during the year. The loan was fully settled in November 2023. For the year ended December 31, 2023, the Company recognized the interest income of $4,889 thousand from these loans. There was no such transaction in 2024.

(vii) Other

• 1) As of December 31, 2024 and 2023, other receivables raised due to collection and payment and various expense between the Company and related parties were $663 thousand and $637 thousand, respectively, which were recognized other receivablesrelated parties. Other payables raised due to various expense between the Company and subsidiaries were $1,550 thousand and $1,853 thousand, respectively, which were recognized other payables-related parties.

• 2) Donations

Donations
Unitech Printed Circuit Humanities and Education Foundation Other related parties Total	2024 $ 3,000 300 $ 3,300	2023
		4,000 300
		4,300

The Company’ s donations to related parties were recognized “ selling expenses and administrative expenses”.

• 3) Lease

From August 2024, the Company leased an open office space to its subsidiary. For the year ended December 31, 2024, the Company recognized the rental income of $4 thousand. As of December 31, 2024, the prepaid rent of $1 thousand was recorded under “Other current liabilities” .

(Continued)

58

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(c) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Post-employment benefits Total	2024 $ 96,809 23,530 $ 120,339	2023
		62,513 10,756
		73,269

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	December 31, 2024 $ 1,175,550 1,667,046 1,739,119 16,800 $ 4,598,515	December 31, 2023 407,228 1,713,674 2,038,146 35,950 4,194,998
Land Building and constructions Machinery equipments Certificate of deposit (Note 1)	Short-term and long-term borrowings Short-term and long-term borrowings Long-term borrowings Bureau of Customs’ endorsement and Letzer Industrial Park deposit

(Note1) Classified into the account of “Refundable deposits”.

(9) Significant commitments and contingencies:

• (a) As of December 31, 2024 and 2023, the machinery and equipment agreement entered by the Company had the material amounts of $281,067 thousand and $302,303 thousand, respectively; of which, the payments of $178,507 thousand and $237,019 thousand, respectively.

• (b) The Company’s outstanding standby letter of credit were as follows:

USD JPY	December 31, 2024 $ 145 $ 15,450	(in thousand) December 31, 2023
		811
		332,850

(10) Losses Due to Major Disasters:None

(11) Subsequent Events:None

(Continued)

59

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(12) Other:

• (a) A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

follows:
By function By item	2024			2023
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits
Salary	2,854,878	687,093	3,541,971	2,431,941	479,218	2,911,159
Labor and health insurance	269,195	42,478	311,673	274,415	42,118	316,533
Pension	111,998	25,213	137,211	109,008	27,795	136,803
Remuneration of directors	-	22,529	22,529	-	5,490	5,490
Others	87,664	46,310	133,974	81,066	36,582	117,648
Depreciation	970,663	69,384	1,040,047	1,083,773	68,235	1,152,008
Amortization	4,530	23,688	28,218	4,310	23,469	27,779

The extra information for number of employee and expense of employee benefit for the Company were as follows:

Number of employees Number of directors who were not employees The average employee benefit The average salaries and wages Adjustment of Average salary expenses

The salary payment policy (including directors, managers and employees) for the Company was as follow:

• (i) The salary payment policy, standard, portfolio and the procedure of payment regulation are on the basis of the Company’ s Human Resources regulation to execute. As for the profit allocation of director’s and supervision’s remuneration, the Company will firstly do the salary provision according to the Article of Association, and then resolution by remuneration committee. After those procedure, the profit allocation will have the approval form the Board and will be reported on the shareholder’s meeting.

• (ii) The relationship between remuneration payment and operating performance is positive, and will pay reasonably after the Company do the operating risk evaluation.

(Continued)

60

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(13) Other disclosures:

• (a) Information on significant transactions:

The following were the information on significant transactions required by the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Company:

• (i) Loans to other parties:

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower (Note 2)	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits (Note 1)	Maximum limit of fund financing (Note 1)
													Item	Value
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nantong) Co., Ltd.	Other receivable s-related parties	Yes	190,890	94,038	94,038	3.45	2	-	General operating and return the loan	-	-	-	3,840,377	3,840,377

Note 1: The total amount available for loan of the Company shall not exceed 20% of its net worth; and the individual amount available for loan shall not exceed 10% of the Company’s net worth. For a subsidiary who, directly or indirectly, holds the entire shares of a foreign subsidiary, the maximum amount available for loan should not exceed the net worth of subsidiary which is lender. Note 2: The methods of capital loan and nature are as follows:

(1) Fill in 1 for those who have business dealings.

• (2) Fill in 2 if there is a need for short-term financing.

• (ii) Guarantees and endorsements for other parties:

No. (Note1)	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise (Note3 and 5)	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements (Note 4 and 6)	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company (Note2)
0	The Company	Unitech BVI	2	6,339,779	288,000	-	-	-	% -	10,143,646	Y	N	N
0	The Company	Shanghai Unitech Electronics (Nantong) Co., Ltd.	2	6,339,779	1,731,825	1,490,208	1,068,169	-	% 11.75	10,143,646	Y	N	Y
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nantong) Co., Ltd.	2	3,840,377	1,357,072	-	-	-	% -	7,680,754	Y	N	Y

• Note1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

• (a) The Company is ‘0’.

(b) The subsidiaries are numbered in order starting from ‘1’.

Note2: 7 forms of relationships in which corporate guarantees exist are defined as follows:

(a) Entities have business relations with Company.

(b) The Company directly or indirectly holds more than 50% of voting shares of its subsidiaries.

(c) Investees directly or indirectly own more than 50% of voting shares of the Company.

(d) The Company directly or indirectly holds 90% of voting shares of its subsidiaries.

(e) Entities have construction contract agreements with the Company.

(f) The reason for the Company jointly invested in the entities is to provide proportionate endorsements.

• (g) The Company has contractual pre-sold house agreements with its related parties under the Consumer Protection Law.

• Note3: The Company’s aggregate amount allows endorsement or guarantee that does not exceed 50% of its net worth in December 31, 2024.

Note4: The Company’s aggregate amount allows endorsement or guarantee that does not exceed 80% of its net worth in December 31, 2024.

Note5: The Subsidiaries aggregate amount to one company allows endorsement or guarantee that does not exceed 100% of its net worth in December 31, 2024.

Note6: The Subsidiaries aggregate total amount allows endorsement or guarantee that does not exceed 200% of its net worth in December 31, 2024.

(Continued)

61

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(iii) Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):

				(Thousand Shares)	(Thousand Shares)	(Thousand Shares)	(Thousand Shares)	(Thousand Shares)
Name of holder	Category and name of security	Relationship with company	Account title	Ending balance				Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company	Ideal Bike Corporation	Related party	Financial assets at fair value through other comprehensive income non-current	36,254	295,830	% 11.10	295,830	-
DA-TAI Investment Co., Ltd.	ANCAD INC	-	"	26	-	% 2.02	-	-
DA-TAI Investment Co., Ltd.	Taiwan First Biotechnology Corporation	-	"	5,306	109,782	% 4.00	109,782	-
DA-TAI Investment Co., Ltd.	Jih Sun Money Market Fund	-	Current financial assets at fair value through profit or loss	1,471	22,759	-	22,759	-

• (iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock: None.

• (v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:

Name of property	Transaction date	Transaction amount	Status of payment	Counter- party	Relationship with the Company	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	References for determining price	Purpose of acquisition and current condition	Others
						Owner	Relationshi p with the Company	Date of transfer	Amount
Land	2023.01.13	1,132,332 (Note 1)	Paid in full	Industrial Developme nt Bureau, Ministry of Economic Affairs	None	Not applicable	Not applicable	Not applicable	Not applicable	Note 2	Overall planning of operation	None

Note 1: The total transaction amount, after deducting the rent paid of $364,098 thousand and the advance payment for land costs of $9,037 thousand results in an actual payment amount of $759,197 thousand.

Note 2: The price was based on a letter from the Industrial Development Bureau, Ministry of Economic Affairs.

• (vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.

• (vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company	Shanghai Unitech Electronics (Nantong) Co., Ltd.	Subsidiary	Purchase	3,719,185	% 39.92	The payment terms are based on the loose funds.	-	The payment terms are based on the loose funds.	(1,231,857)	(42.66)%	-
Shanghai Unitech Electronics Nantong) Co., Ltd.	The Company	The Parent company	Sale	(3,719,185)	% (79.14)	The collection terms are based on the loose funds.	-	The collection terms are based on the loose funds.	1,231,857	75.72%	-

(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Shanghai Unitech Electronics (Nantong) Co., Ltd.	The Company	The Parent company	Accounts receivable- related party 1,231,857	3.02	-	-	314,800 (USD9,805 thousand)	-
Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nantong) Co., Ltd.	Subsidiary	Accounts receivable- related party- other 102,294	-	-	-	6,236 (CNY1,367 thousand)	-

(Continued)

62

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(ix) Trading in derivative instruments: None.

(b) Information on investees:

The following is the information on investees for the year 2024 (excluding information on investees in Mainland China):

(Thousand Shares)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2024	Balance as of December 31, 2024	Balance as of December 31, 2024	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2024	December 31, 2023	Shares	Percentage of ownership	Carrying value
The Company	Unitech BVI	British Virgin Islands	Reinvestment	2,793,183	2,793,183	4.34	% 100.00	4,581,379	267,951	266,543	-
The Company	DA-TAI Investment Co., Ltd.	Taipei	General investment	820,019	820,019	82,000	% 100.00	1,080,522	3,998	3,998	-
The Company	Unitech Thailand	Thailand	Manufacturing and sale of PCB	459,077	67,269	5,000	% 100.00	481,034	(3,404)	(3,404)	Note 1
The Company	Unitech HK	Hong Kong	Reinvestment	153,980	153,980	5,000	% 6.10	257,913	285,563	17,413	-
DA-TAI Investment Co., Ltd.	Fulltech Fiber Glass Corp.	Taipei	Manufacturing of glass and glass products	600,684	600,684	60,655	% 11.70	947,830	52,675	5,070	-
Unitech BVI	Unitech HK	Hong Kong	Reinvestment	2,480,927	2,480,927	77,000	% 93.90	4,587,695	285,563	268,150	-

Note 1: The company increased the capital to Unitech Thailand THB 424,700 thousand in 2024.

(c) Information on investment in mainland China:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment (Note1)	Accumulated outflow of investment from Taiwan as of January 1, 2024	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2024	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note2)	Book value	Accumulated remittance of earnings in current period
					Outflow	Inflow
Shanghai Unitech Electronics Co., Ltd.	Manufacturing and sale of PCB	2,474,777	( 2 )	2,480,927	-	-	2,480,927	225,474	100.00%	225,474	3,840,377	-
Shanghai Unitech Electronics (Nantong) Co., Ltd.	Manufacturing and sale of PCB	4,486,960	( 3 )	937,800 (Note3)	-	-	937,800	282,373	100.00%	282,373	4,725,966	-

(ii) Limitation on investment in Mainland China:

Company Name	Accumulated Investment in Mainland China as of December 31, 2024 (Note4)	Investment Amounts Authorized by Investment Commission, MOEA (Note4)	Upper Limit on Investment (Note5)
The Company	4,094,715 (USD 124,896 thousand)	4,094,715 (USD 124,896 thousand)	7,607,734

Note1: Investments are made through one of three ways:

(1) Direct investment from Mainland China

• (2) Indirect investment from third-party country

• (3) Others

Note2: The recognition of gain and loss on investment based on the audit financial report which was assured by R.O.C. Accountant. Note3: The amount includes the capitalization of retained earnings amounting to USD27,000 thousand. Note4: As of December 31, 2024, exchange rate USD/NTD 1:32.785

Note5: Calculated based on 60% of the Company’s net worth.

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China for the year ended December 31, 2024, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

(d) Major shareholders:

(Unit: Share)

		(Unit: Share)
Shareholding Shareholder’s Name	Shares	Percentage
GUO-LING INVESTMENT CO. LTD	44,884,181	% 6.32

(Continued)

63

Unitech Printed Circuit Board Corporation Notes to the Financial Statements

(14) Segment information:

Please refer to 2024 Consolidated Financial Statements.

64

Unitech Printed Circuit Board Corporation

Statement of cash and cash equivalents

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item Cash in stock Demand deposits and checking accounts Foreign currency deposits Time deposits Total	Description Amount $ 611 78,098 USD $19,459 thousand, exchange rate 32.785 637,970 EUR $162 , exchange rate 34.14 6 JYP $151 thousand, exchange rate 0.2099 32 CNY $8,978 thousand, exchange rate 4.478 40,203 THB $303 thousand, exchange rate 0.9623 291 USD $3,000 thousand, exchange rate 32.785 (due to January 3, 2025, interest rate: 4.72%) 98,355 $ 855,566

65

Unitech Printed Circuit Board Corporation

Statement of trade receivables

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

	Item		Amount
Non Related-parties:
S6800		$	1,113,401
A5800			861,348
A1800			418,997
Others (all of them were less than 5%)			2,030,919
Subtotal			4,424,665
Less: Loss allowance			(24,054)
Net value		$	4,400,611

Statement of inventories

Item Raw materials and supplies Work in Progress Finished goods Merchandise inventory Subtotal Less: Allowance to reduce inventory to market value Total	Amount Cost Net realizable value Remark $ 229,509 237,978 adopted replacement cost 1,132,669 1,294,165 adopted net realizable value 576,465 694,994 〃 240,291 245,740 〃 2,178,934 2,472,877 (114,394) $ 2,064,540
	Cost $ 229,509 1,132,669 576,465 240,291 2,178,934 (114,394) $ 2,064,540

66

Unitech Printed Circuit Board Corporation

Statement of financial assets measured at fair value through other

comprehensive income - non-current

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars and Shares)

Item		January 1,2024 Number of shares Fair value 34,000 $ 339,660	Addition Number of shares Amount 2,254 19,833	Decrease Number of shares Amount - -	Disposal -	Evaluation (63,663)	December 31, 2024 Number of shares Fair value 36,254 295,830	Endorsement or Pledge Remark No -
		Number of shares 34,000	Number of shares 2,254	Number of shares -			Number of shares 36,254
Non-current: Ideal Bike Corporation

67

Unitech Printed Circuit Board Corporation

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars and Shares)

Investee Valuation accounted for equity method: Unitech Electronics International Limited (BVI) Da Tai Investment Company UNITECH PCB (THAILAND) CO.,LTD. Unitech Electronics International Limited (HK)	January 1, 2024 Number of shares Amount 4.34 $ 4,094,423 82,000 1,032,757 753 67,302 5,000 228,740 $ 5,423,222	Addition Number of shares Amount - - - - 4,247 391,808 - - 391,808	Addition Number of shares Amount - - - - 4,247 391,808 - - 391,808	Deductions Number of shares Amount - - - - - - - - -	Deductions Number of shares Amount - - - - - - - - -		Investment accounted under the equity method 266,543 3,998 (3,404) 17,413 284,550		Others - 30,869 - - 30,869	Cumulative translation adjustment 220,413 12,898 25,328 11,760 270,399	Cash Dividend - - - - -	December 31, 2024 Name of shares Shareholding ratio(%) Amount Endorsement or Pledge 4.34 100.00 4,581,379 No 82,000 100.00 1,080,522 No 5,000 100.00 481,034 No 5,000 6.10 257,913 No 6,400,848	December 31, 2024 Name of shares Shareholding ratio(%) Amount Endorsement or Pledge 4.34 100.00 4,581,379 No 82,000 100.00 1,080,522 No 5,000 100.00 481,034 No 5,000 6.10 257,913 No 6,400,848	December 31, 2024 Name of shares Shareholding ratio(%) Amount Endorsement or Pledge 4.34 100.00 4,581,379 No 82,000 100.00 1,080,522 No 5,000 100.00 481,034 No 5,000 6.10 257,913 No 6,400,848
	Number of shares 4.34 82,000 753 5,000	Number of shares - - 4,247 -		Number of shares - - - -								Name of shares 4.34 82,000 5,000 5,000	Shareholding ratio(%) 100.00 100.00 100.00 6.10

68

Unitech Printed Circuit Board Corporation

Statement of trade payables

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item		Amount
Non related-parties:
Elite Materil Co., Ltd.	$	355,188
Lin Horn Technology Co., Ltd		106,433
Atotech Taiwan Limited Corp.		97,171
Others (all of them were less than 5%)		1,077,486
Subtotal		1,636,278
Less: loss on exchange rate		19,366
Total	$	1,655,644

69

Unitech Printed Circuit Board Corporation

Statement of other payables

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item		Amount
Salary payables	$	570,941
Equipment payables		97,057
Others (all of them were less than 5%)		426,474
Total	$	1,094,472

Statement of long-term borrowings

Amount of borrowings

		Current	Non-current
Item		portion	portion	Contract Period	Pledges or collaterals
Bank of Taiwan Syndicated		600,000	1,497,000	2028.04	Land, Buildings and
					Facilities
Chang Hwa Commercial Bank		22,264	298,709	2039.05	Land
Chang Hwa Commercial Bank		20,000	395,040	2026.05	No
Mega International		111,120	111,080	2026.12	Land and Buildings
Commercial Bank
Mega International		66,800	233,200	2029.03	Land and Buildings
Commercial Bank
Shin Kong Commercial Bank		93,000	522,500	2027.03	Land and Buildings
Shin Kong Commercial Bank		7,000	27,500	2027.03	No
Cota Commercial Bank		40,000	50,000	2026.07	No
Total	$	960,184	3,135,029

Note: The interest interval is between 2.08%~2.71%.

70

Unitech Printed Circuit Board Corporation

Statement of operating revenue

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item	Quantity (Unit: sq ft)		Amount
Layer of 2 HDI	419.00	$	208,964
Layer of 4 HDI	2,611.00		1,372,405
Layer of 6 HDI	2,038.00		2,411,232
Layer of 8 HDI	3,124.00		5,026,401
More than 10 Layers	2,190.00		8,432,886
Others	-		110,412
Net sales		$	17,562,300
	Summary of operating expenses
	Item		Amount
Selling expenses and	administrative expenses:
Salary expenses		$	687,429
Miscellaneous expenses			131,361
Commissions expenses			157,260
Others (all of them were less than 5%)			515,337
Subtotal			1,491,387
Research and development expenses			61,167
Expected credit loss			11,596
Total		$	1,564,150

71

Unitech Printed Circuit Board Corporation

Statement of operating costs

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item		Amount
Direct raw material
Balance, beginning of year	$	128,454
Add: purchased		2,757,109
Less: transferred to manufacturing expenses		(17,062)
direct raw material, end of year		(117,696)
Direct raw material used		2,750,805
Indirect raw material
Balance, beginning of year		95,250
Add: purchased		2,325,616
Less: transferred to manufacturing expenses		(419,139)
indirect raw material, end of year		(111,813)
Indirect raw material used		1,889,914
Direct labor		2,386,519
Manufacturing expenses		3,917,470
Manufacturing cost		10,944,708
Add: work in process, beginning of year		987,616
Less: work in process, end of year		(1,132,669)
transferred to research and development expenses		(15,031)
other		(1,564)
Cost of finished goods		10,783,060
Add: finished goods, beginning of year		301,422
finished goods(warehouse), beginning of year		241,272
Less: finished goods, end of year		(235,678)
finished goods(warehouse), end of year		(340,787)
other		(31,292)
Cost of goods sold-finished goods		10,717,997
Merchandise, beginning of the year		327,302
Add: purchased		4,233,383
Less: merchandise, end of the year		(240,291)
Cost of merchandise sold		4,320,394
Add: gain on valuation of inventories		(35,745)
revenue from sales of scraps		(260,084)
Cost of sales	$	14,742,562

Statement of change in cost and accumulated depreciation of property, plant and equipment refer to note 6(g). Statement of change in cost and accumulated depreciation of right-of-use assets refer to note 6(h). Statement of change in cost and accumulated amortization of intangible assets refer to note 6(i).