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UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT

DECEMBER 31, 2025 AND 2024

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

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

Contents	Page
1. Cover Page	1
2. Table of Contents	2 ~ 3
3. Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4. Independent Auditors' Report	5 ~ 12
5. Consolidated Balance Sheets	13 ~ 14
6. Consolidated Statements of Comprehensive Income	15
7. Consolidated Statements of Changes in Equity	16
8. Consolidated Statements of Cash Flows	17 ~ 18
9. Notes to the Consolidated Financial Statements	19 ~ 65
(1) History and Organization	19
(2) The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization	19
(3) Application of New Standards, Amendments and Interpretations	19 ~ 20
(4) Summary of Material Accounting Policies	20 ~ 32
(5) Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty	32

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Contents

Contents	Page
(6) Details of Significant Accounts	33 ~ 51
(7) Related Party Transactions	51 ~ 55
(8) Pledged Assets	55
(9) Significant Contingent Liabilities and Unrecognized Contract Commitments	55
(10) Significant Disaster Loss	55
(11) Significant Events after the Balance Sheet Date	55
(12) Others	55 ~ 63
(13) Supplementary Disclosures	64
(14) Segment Information	64 ~ 65

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Ubiqconn Technology, Inc.

Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2025, pursuant to the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the company that is required to be included in the consolidated financial statements of affiliates, is the same as the company required to be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standard 10. Also, if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare separate consolidated financial statements of affiliates.

Hereby declare,

Ubiqconn Technology, Inc.

Chien, Ming-Tz, Chairman

March 11, 2026

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INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Ubiqconn Technology, Inc.

Opinion

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

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

Basis for opinion

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

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Key audit matters

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

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

Assess the reasonableness of purchase price allocation in acquisition transactions

Description

The Group acquired E3 Displays, LLC in July 2025, and the transaction was based on acquisition method. Refer to Note 4(30) for the relevant accounting policies, and Note 6(25) for details of acquisition transactions.

The purchase price allocation for this acquisition was based on an independent external expert report engaged by the management. Given that the purchase price allocation involves significant management judgment and that the assets (including goodwill and intangible assets) and liabilities arising from the acquisition have a material effect on the financial statements, we identified this acquisition as one of the key audit matters for the year.

How our audit addressed the matter

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

Evaluated the qualifications and objectivity of external experts engaged by the management.

Reviewed the valuation methodologies, key assumptions, and data used by external experts. We performed the audit procedures with the assistance of our internal valuation expert as follows:

(1) Reviewed the valuation methodologies and calculation methods applied by the external valuation experts.

(2) Compared the assumptions used for projected revenue growth rates and gross profit margins with historical results, economic conditions, and industry forecasts.

(3) Assessed the reasonableness of discount rates applied by comparing them with market benchmarks for similar assets.

Reviewed the accounting treatment and disclosure and presentation in financial statement.

Existence of revenue from customers

Description

Refer to Note 4(28) for accounting policies on revenue recognition, and Note 6(15) for details of operating revenue.

The Group is primarily engaged in the manufacture and sales of industrial computers and in-vehicle products, etc. The industrial computer business is easily affected by the project life cycle of products and needs to focus on accepting orders of new projects. As a result, we identified the existence of revenue from customers as one of the key audit matters.

How our audit addressed the matter

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

Assessed and tested whether the internal control procedures of sales transactions are

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in accordance with the Group’s internal control policies.

Selected samples of sales transactions, and obtained and verified the related vouchers of such sales from customers.

Evaluation of inventories

Description

Refer to Note 4(12) for accounting policies on inventory valuation, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to inventory valuation, and Note 6(5) for details of inventory valuation.

The Group is primarily engaged in the manufacture and sales of industrial computers and in-vehicle products, etc. Given the long product life cycle of industrial computer products, some products or spare parts have long inventory period due to long-term supply and maintenance needs of customers. The order adjustments of customers or lower-than-expected market conditions may lead to fluctuations in product prices or low inventory correction, which may result in a higher risk of decrease in market value or obsolescence. As the Group is primarily engaged in the sales of industrial computers, its amounts of inventories are material and the types of inventories vary. Management evaluates inventories stated at the lower of cost and net realizable value. Since the evaluation of inventories is subject to management’s judgment and the accounting estimations will have significant influence on the inventory values, the evaluation of inventories has been identified as one of the key audit matters.

How our audit addressed the matter

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

Assessed the policy of allowance for inventory valuation loss, based on our understanding of the operations and industry of the Group.

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Inspected the management’s individually identified out-of-date inventory list and checked the related supporting documents.
Tested the basis of market value used in calculating the net realizable value of each inventory and validated the accuracy of calculation of selected samples.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Ubiqconn Technology, Inc. as of and for the years ended December 31, 2025 and 2024.

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

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

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

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

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Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of

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

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements

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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.

Chang, Shu-Chiung

Lin, Po-Chuan

For and on Behalf of PricewaterhouseCoopers, Taiwan

March 16, 2026

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

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

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

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 986,714	37	$ 599,227	22
1110	Current financial assets at fair value through profit or loss	6(2)	318,201	12	-	-
1136	Current financial assets at amortised cost	6(3) and 8	36,840	2	898,225	33
1140	Current contract assets	6(15)	7,888	-	8,858	-
1170	Accounts receivable, net	6(4)	184,865	7	256,779	9
1180	Accounts receivable - related parties	7	1,005	-	453	-
1200	Other receivables		22,714	1	19,793	1
1220	Current tax assets		4,466	-	326	-
130X	Inventory	6(5)	657,150	25	713,957	26
1410	Prepayments		29,952	1	14,171	1
11XX	Total current assets		2,249,795	85	2,511,789	92
Non-current assets
1535	Non-current financial assets at amortised cost	6(3) and 8	-	-	10,000	-
1600	Property, plant and equipment	6(6) and 7	64,688	2	52,571	2
1755	Right-of-use assets	6(7)	80,200	3	83,014	3
1780	Intangible assets	6(8)	187,170	7	15,949	1
1840	Deferred tax assets	6(21)	50,703	2	46,840	2
1920	Guarantee deposits paid	7	13,345	1	12,203	-
1990	Other non-current assets		3,497	-	5,601	-
15XX	Total non-current assets		399,603	15	226,178	8
1XXX	Total assets		$ 2,649,398	100	$ 2,737,967	100

(Continued)

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current liabilities
2130	Current contract liabilities	6(15)	$ 52,473	2	$ 100,218	4
2170	Accounts payable		289,456	11	254,442	9
2200	Other payables	6(9)	122,444	4	125,946	5
2220	Other payables - related parties	7	16,426	1	16,709	1
2230	Current income tax liabilities		-	-	10,665	-
2250	Current provisions		10,503	-	7,240	-
2280	Current lease liabilities	6(7) and 7	45,676	2	38,822	1
2399	Other current liabilities		1,828	-	1,967	-
21XX	Total current liabilities		538,806	20	556,009	20
Non-current liabilities
2550	Non-current provisions		1,394	-	2,770	-
2570	Deferred tax liabilities	6(21)	24,417	1	647	-
2580	Non-current lease liabilities	6(6) and 7	39,965	2	48,749	2
2600	Other non-current liabilities	7	6,905	-	6,360	-
25XX	Total non-current liabilities		72,681	3	58,526	2
2XXX	Total liabilities		611,487	23	614,535	22
Equity
Equity attributable to owners of parent
	Share capital	6(12)
3110	Common stock		860,000	33	860,000	32
	Capital surplus	6(13)
3200	Capital surplus		1,106,618	41	1,106,618	41
	Retained earnings	6(14)
3310	Legal reserve		34,504	1	34,504	1
3350	Unappropriated retained earnings		14,496	1	119,889	4
	Other equity interest
3400	Other equity interest		22,293	1	2,421	-
31XX	Equity attributable to owners of the parent		2,037,911	77	2,123,432	78
3XXX	Total equity		2,037,911	77	2,123,432	78
3X2X	Total liabilities and equity		$ 2,649,398	100	$ 2,737,967	100

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

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating income	6(15) and 7	$ 1,970,085	100	$ 2,021,425	100
5000	Operating costs	6(5)(20) and 7	( 1,450,289)	( 74)	( 1,556,704)	( 77)
5900	Net operating margin		519,796	26	464,721	23
	Operating expenses	6(20) and 7
6100	Selling expenses		( 240,991)	( 12)	( 252,143)	( 12)
6200	General and administrative expenses		( 160,062)	( 8)	( 118,635)	( 6)
6300	Research and development expenses		( 231,464)	( 12)	( 240,787)	( 12)
6450	Expected credit impairment (loss)	12(2)
	gain		( 493)	-	4,994	-
6000	Total operating expenses		( 633,010)	( 32)	( 606,571)	( 30)
6900	Operating (loss) profit		( 113,214)	( 6)	( 141,850)	( 7)
	Non-operating income and expenses
7100	Interest income	6(16)	20,772	1	19,186	1
7010	Other income	6(17)	7,439	-	14,810	1
7020	Other gains and losses	6(18)	9,970	1	20,596	1
7050	Finance costs	6(19) and 7	( 2,678)	-	( 2,509)	-
7000	Total non-operating income and expenses		35,503	2	52,083	3
7900	Profit (loss) before income tax		( 77,711)	( 4)	( 89,767)	( 4)
7950	Tax benefit (expense) expense	6(21)	15,345	1	22,610	1
8200	Profit (loss) for the year		($ 62,366)	( 3)	($ 67,157)	( 3)
	Other comprehensive income (loss)
	Components of other comprehensive loss that will not be reclassified to profit or loss
8311	Income (loss) on remeasurements of defined benefit plans		($ 27)	-	$ 12	-
8310	Other comprehensive (loss) income that will not be reclassified to profit or loss		( 27)	-	12	-
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		19,872	1	742	-
8360	Other comprehensive income that will be reclassified to profit or loss		19,872	1	742	-
8300	Other comprehensive income		$ 19,845	1	$ 754	-
8500	Total comprehensive (loss) income		($ 42,521)	( 2)	($ 66,403)	( 3)
	Profit attributable to:
8610	Shareholders of parent		($ 62,366)	( 3)	($ 67,157)	( 3)
	Comprehensive income attributable to:
8710	Shareholders of parent		($ 42,521)	( 2)	($ 66,403)	( 3)
	Earnings (loss) per share (in dollars)	6(22)
9750	Basic earnings (loss) per share		($ 0.73)	($	0.82)

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

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Equity attributable to owners of the parent
	Notes	Ordinary share	Capital surplus	Retained Earnings		Exchange differences on translation of foreign financial statements
				Legal reserve	Unappropriated retained earnings
Year ended December 31, 2024
Balance at January 1, 2024		$ 750,000	$ 318,681	$ 8,719	$ 298,819	$ 1,679
Loss for the year		-	-	-	( 67,157)	-
Other comprehensive income		-	-	-	12	742
Total comprehensive income		-	-	-	( 67,145)	742
Appropriations of 2023 earnings:	6(14)
Legal reserve		-	-	25,785	( 25,785)	-
Cash dividends		-	-	-	( 86,000)	-
Issue of shares	6(12)	110,000	761,463	-	-	871,463
Cost of Employee Subscription Retention in Cash Capital Increase	6(11)	-	26,474	-	-	26,474
Balance at December 31, 2024		$ 860,000	$ 1,106,618	$ 34,504	$ 119,889	$ 2,421
Year ended December 31, 2025
Balance at January 1, 2025		$ 860,000	$ 1,106,618	$ 34,504	$ 119,889	$ 2,421
Loss for the year		-	-	-	( 62,366)	-
Other comprehensive income		-	-	-	( 27)	19,872
Total comprehensive income		-	-	-	( 62,393)	19,872
Appropriations of 2024 earnings:	6(14)
Cash dividends		-	-	-	( 43,000)	-
Balance at December 31, 2025		$ 860,000	$ 1,106,618	$ 34,504	$ 14,496	$ 22,293

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

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UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax	($)	77,711)	($) 89,767)
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(20)	65,755	58,518
Amortization	6(20)	10,966	5,621
Net gain on financial assets or liabilities	6(18)
measured at fair value through profit or loss	(	5,048)	-
Expected credit impairment loss (gain)	12(2)	493	( 4,994)
Interest expense	6(19)	2,678	2,509
Interest income	6(16)	( 20,772)	( 19,186)
Dividend income	6(17)	( 436)	-
Share-based payments	6(11)	-	26,474
Gain on write-off of past due payable	6(17)	( 223)	-
Loss on disposal of property, plan and equipment	6(18)	8	4
Property, plant and equipment transferred to expenses	6(6)	22	115
Gain on lease modification	6(7)(18)	-	85)
Other item	(	27)	35)
Changes in operating assets and liabilities
Changes in operating assets
Financial assets and liabilities at fair value through profit or loss		2,515	-
Contract assets		970	( 3,371)
Accounts receivable		98,433	89,572
Accounts receivable-related parties	(	539)	4,545
Other receivables	(	249)	( 3,722)
Inventories		87,514	80,951
Prepayments	(	11,085)	( 3,479)
Changes in operating liabilities
Contract liabilities	(	49,571)	37,459
Accounts payable		22,291	( 122,698)
Other payables	(	11,450)	( 24,980)
Other payables - related parties	(	283)	1,488
Provisions		1,493	961
Other current liabilities	(	140)	( 4,330)
Other non-current liabilities		518	( 692)
Cash inflow generated from operations		116,122	30,878
Interest received		21,031	18,498
Interest paid	(	2,678)	( 2,509)
Income taxes paid	(	5,312)	( 33,664)
Net cash flows from operating activities		129,163	13,203

(Continued)

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

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through profit or loss		($ 315,668 )	$ -
Acquisition of financial assets at amortised cost		( 15,713 )	( 876,123 )
Proceeds from disposal of financial assets at amortised cost		887,215	-
Acquisition of property, plant and equipment	6(23)	( 24,226 )	( 24,174 )
Proceeds from disposal of property, plant and equipment		10	21
Acquisition of subsidiaries (net of cash)	6(25)	( 184,141 )	-
Acquisition of intangible assets		( 3,956 )	( 4,617 )
Decrease (increase) in refundable deposits		( 815 )	2,151
Decrease (increase) in other non-current assets		5,601	6,608
Dividends received		436	-
Net cash flows from (used in) investing activities		348,743	( 896,134 )
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of lease principal	6(24)	( 43,210 )	( 36,628 )
Increase in short-term borrowings		38,583	33,721
Decrease in short-term borrowings		( 46,227 )	( 33,721 )
Cash dividends paid	6(14)	( 43,000 )	( 86,000 )
Proceeds from issuance of shares	6(12)	-	871,463
Net cash flows (used in) from financing activities		( 93,854 )	748,835
Effect of exchange rate changes on cash and cash equivalents		3,435	1,059
Net increase (decrease) in cash and cash equivalents		387,487	( 133,037 )
Cash and cash equivalents at beginning of year		599,227	732,264
Cash and cash equivalents at end of year		$ 986,714	$ 599,227

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

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UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

History and Organization

Ubiqconn Technology, Inc. (referred herein as ‘Ubiqconn’ or ‘the Company’) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on June 10, 2011 upon approval by the Ministry of Economic Affairs. The Company and its consolidated subsidiaries are collectively referred to as the "Group". Ubiqconn is primarily engaged in the manufacture and trading of industrial computers, in-vehicle products, electronic components and peripheral equipment. The company's stock has been listed and traded on the Taiwan Stock Exchange since May 2024. Ubiqconn and the consolidated subsidiaries are collectively referred herein as “the Group”. FIC Global, Inc. is the Company’s parent company, which comprehensively holds a 55.85% equity interest in the Company.

The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization

These consolidated financial statements were authorized for issuance by the Board of Directors on March 11, 2026.

Application of New Standards, Amendments and Interpretations

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

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

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

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

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

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

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

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

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

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

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

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

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

IFRS 18, ‘Presentation and disclosure in financial statements’

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

Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements

are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

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

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

(b) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

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

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

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

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

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

(d) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as

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equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

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

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)
			December 31, 2025	December 31, 2024
Ubiqconn	Ruggon Corporation (Ruggon)	Sales of industrial computers, automotive electronics, electronic components and peripheral equipment	100%	100%
Ubiqconn	Ubiqconn Technology (USA) Inc. (UNA)	Sales of industrial computers, automotive electronics, electronic components and peripheral equipment	100%	100%
Ubiqconn	Ubiqconn Technology Europe GmbH (UEG)	Sales of industrial computers, automotive electronics, electronic components and peripheral equipment	100%	100%

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
Ubiqconn	Ubiqconn Technology Holding Inc. (UNH)	General investment activities	100%	-	Note 1
UNH	E3 Displays, LLC (E3D)	Provision of optical bonding and design services for touchscreens and displays	100%	-	Note 2

Note 1: It was established in March 2025.
Note 2: On July 1, 2025, UNH acquired 100% ownership of E3 Displays, LLC. Please refer to Note 6 (25) for details.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Foreign currency translation

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

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
(c) Non- monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All foreign exchange gains and losses are presented in the statement of comprehensive income

within ‘other gains and losses’.

B. Translation of foreign operations

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

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
iii. All resulting exchange differences are recognized in other comprehensive income.

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

(5) Classification of current and non-current items

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

(a) Assets that are expected to be realized, or are intended to be sold or consumed in the normal operating cycle;
(b) Assets that are held primarily for the purpose of trading;
(c) Assets that are expected to be realized within twelve months after the reporting period;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

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

(a) Liabilities that are expected to be settled in the normal operating cycle;
(b) Liabilities that are held primarily for the purpose of trading;
(c) Liabilities that are due to be settled within twelve months after the reporting period;
(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

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

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

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Financial assets at amortized cost

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

(9) Accounts and notes receivable

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

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

(10) Impairment of financial assets

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

(11) Derecognition of financial assets

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

(12) Inventories

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

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(13) Property, plant and equipment

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

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

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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

Machinery and equipment	4~6 years
Office equipment	3~4 years
Leasehold improvements	2~4 years
Other equipments	3~6 years

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

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

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

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

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

(a) The amount of the initial measurement of lease liability;

(b) Any lease payments made at or before the commencement date;

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

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

(15) Intangible assets

A. Computer software

Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 3 to 8 years.

B. Customer relationships and proprietary technology arises in a business combination and recognized at their fair value as of the acquisition date. The basis for the fair value recognition is derived from the valuation report. These assets are amortized on a straight-line basis over their estimated useful lives of 3 to 13.5 years.

C. Goodwill arises in a business combination accounted for by applying the acquisition method.

(16) Impairment of non-financial assets

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

B. The recoverable amounts of goodwill are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

(17) Borrowings

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

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(18) Notes and accounts payable

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

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

(19) Derecognition of financial liabilities

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

(20) Offsetting financial instruments

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

(21) Non-hedging and embedded derivatives

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognized in profit or loss.

(22) Provisions

Provisions (including warranties) are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

(23) Employee benefits

A. Short-term employee benefits

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

B. Pensions

(a) Defined contribution plans

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

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of

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pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

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

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

C. Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

(24) Employee share-based payment

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

(25) Income tax

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

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

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the year the stockholders resolve to retain the earnings.

C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

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

(26) Share capital

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

(27) Dividends

Dividends are recorded in the Group’s financial statements in the period in which they are resolved by the Group’s shareholders. Cash dividends are recorded as liabilities.

(28) Revenue recognition

A. Sales revenue

(a) The Group’s primarily manufactures and sells industrial computers, in-vehicle products, electronic components and peripheral equipment. Sales are recognised 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, or the Group has objective evidence that all criteria for acceptance have been satisfied.

(b) The Group’s obligation to provide a repair for faulty products under the standard warranty terms is recognised as a provision.

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

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B. Service revenue

(a) Service revenue arises from product development and maintenance services. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the completed satisfaction of the performance. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized.

(b) The Group’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

(29) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognized as non-current liabilities and are amortized to profit or loss over the estimated useful lives of the related assets using the straight-line method.

(30) Business combinations

A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the

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acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognized and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognized directly in profit or loss on the acquisition date.

(31) Operating segments

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

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

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

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

None.

(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on estimates derived from historical product sales experience. Therefore, there might be material changes to the evaluation.

As of December 31, 2025, the carrying amount of inventories was $657,150.

B. Impairment assessment of goodwill

The impairment assessment of goodwill relies on the Group’s subjective judgement, including identifying cash-generating units, allocating assets and liabilities as well as goodwill to related cash-generating units, and determining the recoverable amounts of related cash-generating units. Please refer to Note 6(8) for the information of goodwill impairment.

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6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Petty cash	$ 150	$ 150
Checking accounts and demand deposits	262,358	275,077
Time deposits	524,206	324,000
Cash equivalents-repurchase agreements	200,000	-
	$ 986,714	$ 599,227

A. The annual interest rate of the Group’s repurchased bond was 1.32% for the year. The bond matures within three months and is a highly liquid cash equivalent.

B. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

C. The Group had classified cash and cash equivalents pledged to others as collateral to current financial assets at amortized cost, and the details are provided in Note 8.

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

Items	December 31, 2025
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Listed stocks	$ 305,816
Beneficiary certificates	9,962
	315,778
Valuation Adjustment	2,423
	$ 318,201

A. Amounts recognised in profit or loss in relation to financial assets and liabilities at fair value through profit or loss are listed below:

	Year ended December 31
	2025
Financial assets mandatorily measured at fair value through profit or loss
Equity instrument
Valuation gain	$ 2,378
Gain on sale	110
Dividend income	436
Beneficiary certificates	45
Derivative instruments	2,515
	$ 5,484

B. The Group has no financial assets at fair value through profit or loss pledged to others.

(3) Financial assets at amortized cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with original maturity date of more than three months	$ 15,748	$ 865,000
Restricted bank deposits	21,092	33,225
Non-current items:
Restricted bank deposits	-	10,000
	$ 36,840	$ 908,225

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

	Years ended December 31
	2025	2024
Interest income	$ 4,608	$ 1,398

B. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group was $36,840 and $908,225, respectively.

C. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.

D. Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2). The counterparties of our company's investment in time deposits are financial institutions with good credit quality, and the possibility of default is expected to be very low.

(4) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 192,090	$ 257,985
Less: Allowance for uncollectible accounts	( 7,225)	( 1,206)
	$ 184,865	$ 256,779

A. The ageing analysis of accounts receivable (including related parties) that were past due but not impaired is as follows:

	December 31, 2025	December 31, 2024
Not past due	$ 166,347	$ 137,100
Up to 30 days past due	21,675	108,371
31 to 90 days past due	4,982	12,077
91 to 180 days past due	59	692
Over 180 days past due	32	198
	$ 193,095	$ 258,438

The above ageing analysis was based on past due date.

B. As of December 31, 2025 and 2024, accounts receivable (including related parties) were all from contracts with customers. As of January 1, 2024, the balance of receivables and allowance for

uncollectible accounts from contracts with customers amounted to $352,155 and $6,200, respectively.

C. As of December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's accounts receivable (including related parties) was $185,870 and $257,232, respectively.

D. The Group did not hold collateral as security for accounts receivable.

E. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(5) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 471,694	($ 102,481)	$ 369,213
Work in progress	197,210	( 24,333)	172,877
Finished goods	104,080	( 8,164)	95,916
Inventory in transit	19,144	-	19,144
	$ 792,128	($ 134,978)	$ 657,150
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 498,460	($ 90,542)	$ 407,918
Work in progress	188,707	( 15,719)	172,988
Finished goods	118,188	( 4,389)	113,799
Inventory in transit	19,252	-	19,252
	$ 824,607	($ 110,650)	$ 713,957

The Group's operating costs recognized for the year:

	Years ended December 31
	2025	2024
Cost of goods sold	$ 1,399,714	$ 1,501,908
Gain on reversal(Loss) of decline in market value	15,066	( 9,687)
Cost of service and warranty	35,509	64,483
	$ 1,450,289	$ 1,556,704

For the year ended December 31, 2024, the Group recognized gain from sale of inventories previously devalued.

(6) Property, plant and equipment

	2025
	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Total
January 1, 2025
Cost	$ 84,872	$ 20,381	$ 14,871	$ 14,782	$ 134,906
Accumulated depreciation and impairment	( 53,669)	( 11,292)	( 7,986)	( 9,388)	( 82,335)
	$ 31,203	$ 9,089	$ 6,885	$ 5,394	$ 52,571
January 1, 2025	$ 31,203	$ 9,089	$ 6,885	$ 5,394	$ 52,571
Additions	17,582	6,729	648	2,633	27,592
Disposals	-	( 18)	-	-	( 18)
Reclassifications	-	( 22)	-	-	( 22)
Depreciation	( 12,429)	( 5,423)	( 3,909)	( 2,307)	( 24,068)
Acquired from business combination	7,503	540	-	11	8,054
Net exchange differences	538	39	-	2	579
December 31, 2025	$ 44,397	$ 10,934	$ 3,624	$ 5,733	$ 64,688
December 31, 2025
Cost	$ 145,655	$ 30,453	$ 23,018	$ 17,549	$ 216,675
Accumulated depreciation and impairment	( 101,258)	( 19,519)	( 19,394)	( 11,816)	( 151,987)
	$ 44,397	$ 10,934	$ 3,624	$ 5,733	$ 64,688

	2024
	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Total
January 1, 2024
Cost	$83,185	$15,192	$13,468	$14,552	$126,397
Accumulated depreciation
and impairment	(54,842)	(7,103)	(4,204)	(6,931)	(73,080)
	$28,343	$8,089	$9,264	$7,621	$53,317
January 1, 2024	$28,343	$8,089	$9,264	$7,621	$53,317
Additions	13,918	5,371	1,404	97	20,790
Disposals	-	(25)	-	-	(25)
Reclassifications	(115)	-	-	-	(115)
Depreciation	(10,943)	(4,346)	(3,783)	(2,324)	(21,396)
December 31, 2024	$31,203	$9,089	$6,885	$5,394	$52,571
December 31, 2024
Cost	$84,872	$20,381	$14,871	$14,782	$134,906
Accumulated depreciation
and impairment	(53,669)	(11,292)	(7,986)	(9,388)	(82,335)
	$31,203	$9,089	$6,885	$5,394	$52,571
(7) Leasing arrangements—lessee
Right-of-use assets(a) The Group leases various assets including buildings and business vehicles. Rental contracts are typically made for periods of 2 to 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants.(b) Short-term leases with a lease term of 12 months or less comprise parking spaces.

	December 31, 2025	December 31, 2024
	Carrying amount	Carrying amount
Buildings and structures	$ 80,083	$ 82,770
Other equipment	117	244
	$ 80,200	$ 83,014
	Years ended December 31
	2025	2024
	Depreciation charge	Depreciation charge
Buildings and structures	$ 41,560	$ 36,995
Other equipment	127	127
	$ 41,687	$ 37,122

(d) For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $5,876 and $13,061, respectively.

(e) Except for depreciation, other information on profit and loss accounts relating to lease contracts is as follows:

	Years ended December 31
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 2,567	$ 2,465
Expense on short-term lease contracts	1,852	1,193
Gain on lease modification	-	85

(f) For the years ended December 31, 2025 and 2024, the Group's total cash outflow for leases were $47,629 and $40,286, respectively.

Lease liability

Carrying amount of lease liabilities	December 31, 2025	December 31, 2024
Current	$ 45,676	$ 38,822
Non-current	$ 39,965	$ 48,749

(8) Intangible assets

	2025
	Computer software	Goodwill	Customer relationships	Proprietary technology	Others	Total
January 1, 2025
Cost	$ 32,588	$ -	$ -	$ -	$ -	$ 32,588
Accumulated amortization and impairment	( 16,639)	-	-	-	-	( 16,639)
	$ 15,949	$ -	$ -	$ -	$ -	$ 15,949
January 1, 2025	$ 15,949	$ -	$ -	$ -	$ -	$ 15,949
Additions- separate acquisition	3,360	-	-	-	-	3,360
Additions- acquired through business combination	-	74,740	54,791	32,230	4,981	166,742
Amortization	( 6,206)	-	( 2,160)	( 1,716)	( 884)	( 10,966)
Net exchange differences	-	5,433	3,966	2,330	356	12,085
December 31, 2025	$ 13,103	$ 80,173	$ 56,597	$ 32,844	$ 4,453	$187,170
December 31, 2025
Cost	$ 35,948	$ 80,173	$ 58,774	$ 34,573	$ 5,343	$214,811
Accumulated amortization and impairment	( 22,845)	-	( 2,177)	( 1,729)	( 890)	( 27,641)
	$ 13,103	$ 80,173	$ 56,597	$ 32,844	$ 4,453	$187,170

	2024
	Computer software	Goodwill	Others	Total
January 1, 2024
Cost	$30,829	$-	$-	$30,829
Accumulated amortization and impairment	(12,705)	-	-	(12,705)
	$18,124	$-	$-	$18,124
January 1, 2024	$18,124	$-	$-	$18,124
Additions- separate acquisition	4,008	-	-	4,008
Reclassifications	(562)	-	-	(562)
Amortization	(5,621)	-	-	(5,621)
December 31, 2024	$15,949	$-	$-	$15,949
December 31, 2024
Cost	$32,588	$-	$-	$32,588
Accumulated amortization and impairment	(16,639)	-	-	(16,639)
	$15,949	$-	$-	$15,949
A.	Details of acquired through business combination are provided in Note 6(25).
B.	As of December 31, 2025, the Group’s goodwill arising from the acquisition of E3 Displays, LLC amounted to $80,173. The impairment testing of goodwill is to allocate the goodwill to the cash-generating units related to E3 Displays, LLC. The Group uses value in use as the basis for calculating the recoverable amount. The value-in-use calculations use cash flow projections based on financial budgets approved by the management covering a five-year period.
	Management determined expected revenue growth rate based on past performance and their expectations of market. The long-term weighted average growth rates used are consistent with the projection included in industry reports. The post-tax discount rate used reflects the risk premium of the affiliated department and operating region.
	The assumptions used for the key valuations as of December 31, 2025 are as follows:
	5-year compound annual revenue growth rate			7.87%
	Long-term growth rate			2.00%
	after-tax discount rate			11.72%

C. Details of amortisation on intangible assets are as follows:

	Years ended December 31
	2025	2024
Operating cost	$ 8	$ 171
Administrative expenses	7,484	2,261
Research and Development expenses	3,474	3,189
	$ 10,966	$ 5,621
(9) Other payables
	December 31, 2025	December 31, 2024
Salary and bonus payable	$ 72,285	$ 76,168
Material processing fees payable	1,982	4,850
Professional service fees payable	5,614	10,524
Insurance expense payable	6,022	6,783
Payable on machinery and equipment	5,066	1,700
Freight expense payable	1,720	2,196
Others	29,755	23,725
	$ 122,444	$ 125,946

(10) Pensions

A. The Company contributes 2% of the employees' monthly salaries and wages for a few foreign employees in accordance with R.O.C. Labor Standards Law to an independent retirement trust fund. The pension costs under the above pension plan were $69 and $71 for the years ended December 31, 2025 and 2024, respectively.

B. Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

C. The Company's subsidiaries in Germany and the U.S has an individual pension plan sponsored by the Company. Each participating employee contributes to the pension fund, which is jointly borne by the Company and employees, with the Company contributing 9.3% and 5%, respectively, of the employee's total salary.

D. The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024 were $18,296 and $17,154, respectively.

(11) Share-based payment

A. For the years ended December 31, 2025 and 2024, the Group’s share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted (in thousands)	Contract period	Vesting conditions
Cash capital increase reserved for employee preemption	2024.04.12	831	None	Vested immediately

The share-based payment arrangements above are settled by equity.

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

Type of arrangement	Grant date	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility	Expected option life	Risk-free interest rate	Fair value per unit (in dollars)
Cash capital increase reserved for employee preemption	2024.04.12	$ 96.80	$65	48.59%	0.07 year	1.22%	$31.8579

Note: Expected price volatility rate was estimated by using the historical price volatility of daily closing price of the Company for the three months preceding the grant date.

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

Equity-settled	Years ended December 31
	2025	2024
	$ -	$ 26,474

(12) Share capital

A. As of December 31, 2025, the Company’s authorized capital was $1,500,000, consisting of 150,000 thousand shares of ordinary stock (including 3,500 thousand shares reserved for employee stock options), and the paid-in capital was $860,000 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number of the Group’s ordinary shares outstanding are as follows (shares in thousands):

	2025	2024
At January 1	86,000	75,000
Cash capital increase	-	11,000
At December 31	86,000	86,000

B. On March 13, 2024, the Board of Directors of the Company resolved to raise additional cash through issuing 11,000 thousand ordinary shares with a par value of $10 (in dollars) per share. The above-mentioned capital increase included public underwriting, competitive auction and employee subscription. The subscription price of public underwriting and employee subscription

was NT$65 (in dollars) per share, and the weighted-average price of competitive auction was NT$84.76 (in dollars) per share. The effective date of the capital increase was set on May 14, 2024 and the registration had been completed on July 9, 2024.

(13) Capital surplus

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

(14) Retained earnings

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. After setting aside or reversing a special reserve as required by the Company's operating needs and relevant laws, the appropriation of the remaining earnings, along with the beginning unappropriated earnings are the accumulated distributable earnings for shareholders, and after retaining certain earnings, shall be proposed by the Board of Directors and resolved by the shareholders.

B. The Company's dividend distribution policy aligns with the current and the future development plan by taking into account of factors such as investment environment, capital needs, domestic and overseas competition, along with the consideration of shareholders' interest. Each year, no less than 10% of the distributable earnings shall be set aside as shareholder dividends, which may be distributed in the form of cash dividends or stock dividends, with cash dividends not less than 20% of the total amount of distributed dividends. However, if the distributable earnings are less than 10% of the paid-in capital or the net profit after tax for the year is less than 2% of the paid-in capital, it may be proposed not to distribute. If a company has no surplus, it may not distribute dividends or bonuses. However, based on the company's financial, business and operating conditions, it may distribute all or part of its statutory surplus reserves and capital reserves in accordance with laws or regulations or the provisions of the competent authority.

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

D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit

~43~

balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

E. The appropriations of 2024 and 2023 earnings as resolved by the shareholders on June 12, 2025 and June 4, 2024 are as follows:

	2024		2023
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Legal reserve	$ -		$ 25,785
Cash dividends	43,000	0.50	86,000	1.147

F. The Company did not distribute the dividends for the year ended December 31, 2025.

(15) Operating revenue

	Years ended December 31
	2025	2024
Revenue from contracts with customers	$ 1,970,085	$ 2,021,425

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines:

2025	Sales Revenue	Service Revenue	Total
Revenue from external customer contracts	$ 1,878,040	$ 92,045	$ 1,970,085
Timing of revenue recognition
At a point in time	$ 1,878,040	$ -	$ 1,878,040
Over time	-	92,045	92,045
	$ 1,878,040	$ 92,045	$ 1,970,085
2024	Sales Revenue	Service Revenue	Total
Revenue from external customer contracts	$ 1,935,931	$ 85,494	$ 2,021,425
Timing of revenue recognition
At a point in time	$ 1,935,931	$ -	$ 1,935,931
Over time	-	85,494	85,494
	$ 1,935,931	$ 85,494	$ 2,021,425

B. Contract assets and liabilities

(a) The Group has recognized the following revenue-related contract assets and liabilities:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract assets:
Contract assets
-service contract	$ 7,888	$ 8,858	$ 5,487
Contract liabilities:
Contract liabilities
-sales contracts	$ 31,782	$ 74,405	$ 45,420
Contract liabilities
-service contract	20,691	25,813	17,339
	$ 52,473	$ 100,218	$ 62,759

(b) Revenue recognized that was included in the contract liability balance at the beginning of the year

	Years ended December 31
	2025	2024
Revenue recognized that was included in the contract liability balance at the beginning of the year
Sales contracts	$ 49,598	$ 15,863
Service contract	23,875	13,859
	$ 73,473	$ 29,722

(16) Interest income

	Years ended December 31
	2025	2024
Interest income from bank deposits	$ 4,389	$ 17,650
Interest income from financial assets measured at amortized cost	4,608	1,398
Other interest income	11,775	138
	$ 20,772	$ 19,186

(17) Other income

	Years ended December 31
	2025	2024
Government grants income	$ 50	$ 9,635
Freight revenue	880	1,293
Dividend income	436	-
Gains on write-off of past due payable	223	-
Other income	5,850	3,882
	$ 7,439	$ 14,810

(18) Other gains and losses

	Years ended December 31
	2025		2024
Net foreign exchange gains	$	4,941	$ 21,465
Gain on lease modification		-	85
Losses on disposals of property, plant and equipment	(	8)	( 4)
Net gain on financial assets and liabilities at fair value through profit or loss		5,048	-
Other losses	(	11)	( 950)
	$	9,970	$ 20,596

(19) Finance costs

	Years ended December 31
	2025	2024
Interest expense on bank borrowings	$ 111	$ 44
Interest expense on lease liabilities	2,567	2,465
	$ 2,678	$ 2,509

(20) Employee benefit expense

	Year ended December 31, 2025
	Operating cost	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 74,977	$ 368,974	$ 443,951
Labor and health insurance fees	7,639	32,485	40,124
Pension costs	3,266	15,099	18,365
Other personnel expenses	4,112	12,427	16,539
Depreciation charge	33,752	32,003	65,755
Amortization charge	8	10,958	10,966
	Year ended December 31, 2024
	Operating cost	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 77,015	$ 348,945	$ 425,960
Labor and health insurance fees	8,721	27,832	36,553
Pension costs	3,251	13,974	17,225
Other personnel expenses	4,569	10,592	15,161
Depreciation charge	33,189	25,329	58,518
Amortization charge	171	5,450	5,621

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall be appropriated as employees' compensation and directors' remuneration. The ratio shall not be lower than 2% for employees' compensation, and no lower than 50% of the total employees' compensation shall be appropriated as non-managerial employees' compensation.

Qualification requirements of employees include the employees of controlled companies or subsidiaries meeting certain specific requirements. The ratio shall not be higher than 1.5% for directors' remuneration. If the Company has accumulated deficit, earnings should be reserved to cover losses.

B. Employees' compensation and directors' remuneration were not accrued as the Company incurred loss before tax for the years ended December 31, 2025 and 2024.

C. Information about employees' compensation and directors' remuneration of the Company as resolved by the Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(21) Income tax

A. Income tax expense

	Years ended December 31
	2025	2024
Current tax:
Current tax on profits for the year	$ 25	$ 26
Tax on undistributed surplus earnings	-	4,039
Prior year income tax over estimation	( 9,494)	( 11,128)
Total current tax	( 9,469)	( 7,063)
Deferred tax:
Origination and reversal of temporary differences	( 5,876)	( 15,547)
Total deferred tax	( 5,876)	( 15,547)
Income tax profit	($ 15,345)	($ 22,610)

B. Reconciliation between income tax expense and accounting profit

	Years ended December 31
	2025	2024
Tax calculated based on loss before tax and statutory tax rate	($ 21,055)	($ 17,394)
Expenses disallowed by tax regulation	34	-
Tax exempt income by tax regulation	( 594)	( 539)
Temporary differences not recognized as deferred tax assets	11,466	2,971
Change in assessment of realization of deferred tax assets	4,298	( 559)
Prior year income tax over estimation	( 9,494)	( 11,128)
Income tax profit	($ 15,345)	($ 22,610)

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

	2025
	January 1	Recognized in profit or loss	Business combination	Exchange difference	December 31
- Deferred tax assets:
Temporary differences:
Loss on inventory	$22,039	$3,235	$-	$-	$25,274
Unrealized exchange loss	-	256	-	-	256
Others	4,991	588	-	-	5,579
Tax losses	19,810	(216)	-	-	19,594
	$46,840	$3,863	$-	$-	$50,703
- Deferred tax liabilities:
Unrealized exchange gain	($586)	$586	$-	$-	$-
Difference in depreciation between tax and accounting	-	1,233	(23,852)	(1,725)	(24,344)
Others	(61)	194	(194)	(12)	(73)
	($647)	$2,013	($24,046)	($1,737)	($24,417)
	$46,193	$5,876	($24,046)	($1,737)	$26,286
	2024
	January 1	Recognized in profit or loss		December 31
- Deferred tax assets:
Temporary differences:
Loss on inventory	$23,976	($1,937)	$22,039
Unrealized exchange loss	1,045	(1,045)	-
Others	5,625	(634)	4,991
Tax losses	-	19,810	19,810
	$30,646	$16,194	$46,840
- Deferred tax liabilities:
Unrealized exchange gain	$-	($586)	($586)
Others	-	(61)	(61)
	$-	($647)	($647)
	$30,646	$15,547	$46,193

D. The amounts of deductible temporary differences that were not recognized as deferred tax assets are as follows:

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 56,723	$ 35,072

E. The Company's and domestic subsidiaries' income tax returns which were assessed and approved by the Tax Authority are as follows:

The company	Assessed year
Ubiqconn	2023
Ruggon	2023

(22) Earnings per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Loss per share (in dollars)
Basic loss per share
Loss attributable to ordinary shareholders of the parent	($ 62,366)	86,000	($ 0.73)
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Loss per share (in dollars)
Basic loss per share
Loss attributable to ordinary shareholders of the parent	($ 67,157)	81,932	($ 0.82)

(23) Supplemental cash flow information

Investing activities with partial cash payments

	Years ended December 31
	2025	2024
Purchase of property, plant and equipment	$ 27,592	$ 20,790
Add: Opening balance of payable on equipment (including related parties)	1,700	5,084
Less: Ending balance of payable on equipment (including related parties)	( 5,066)	( 1,700)
Cash paid during the year	$ 24,226	$ 24,174

(24) Changes in liabilities from financing activities

	2025
	January 1	Changes in cash flow from financing activities	Changes in other non-cash items	December 31
Lease liabilities	$ 87,571	($ 43,210)	$ 41,280	$ 85,641
Short-term borrowings	-	( 7,644)	7,644	-
	$ 87,571	($ 50,854)	$ 48,924	$ 85,641
	2024
	January 1	Changes in cash flow from financing activities	Changes in other non-cash items	December 31
Lease liabilities	$ 115,770	($ 36,628)	$ 8,429	$ 87,571

(25) Business combinations

A. On March 12, 2025, the Group's Board of Directors resolved to acquire all shares of E3 Displays, LLC through the newly established U.S. subsidiary, Ubiqconn Technology Holding Inc., with a total transaction amount of $184,438 (US$6,294 thousand), and the Group obtained the control over E3 Displays, LLC on July 1, 2025. The company is primarily engaged in the provision of optical bonding and design services for touchscreens and displays. As a result of the acquisition, the Group is expected to strengthen the vertical integration capabilities in the rugged computer market and accelerate the expansion in the U.S. market.

B. The following table summarises the consideration paid for E3 Displays, LLC and the fair values of the assets acquired and liabilities assumed at the acquisition date:

	July 31, 2025
Purchase consideration
Cash	$ 184,438
Fair value of identifiable assets acquired and liabilities assumed
Cash	297
Notes and Accounts receivable	24,913
Inventories	28,775
Property, plant and equipment	8,054
Right-of-use assets	30,792
Intangible assets	92,002
Other current and non-current assets	7,472
Accounts payable	(11,793)
Other payables	(6,188)
Lease liabilities	(33,033)
Bank loan	(7,179)
Other current and non-current liabilities	(368)
Deferred tax liabilities	(24,046)
Total fair value of net identifiable assets	109,698
Goodwill	$ 74,740

C. The operating revenue included in the consolidated statement of comprehensive income since July 1, 2025 contributed by E3 Displays, LLC was $107,548. E3 Displays, LLC also contributed loss before income tax of $22,046 over the same period. Had E3 Displays, LLC been consolidated from January 1, 2025, the consolidated statement of comprehensive income would show operating revenue of $2,077,593 and loss before income tax of $137,322.

Related Party Transactions

(1) Parent and ultimate controlling party

The Company is controlled by FIC Global, Inc. (incorporated and established in the Republic of China), which comprehensively holds 55.85% of the Company's shares (including indirect holdings) and is the Company's ultimate parent company.

(2) Names of related parties and relationship

Names of related parties	Relationship with the Group
FIC Global, Inc.	Parent company
First International Computer, Inc. (FIC, Inc.)	Sibling company
Amertek Computer (Shenzhen) Co., Ltd. (Amertek)	〃
Prime Base Inc. (PBI)	〃
Prime Technology (Guangzhou) Inc. (Prime (Guangzhou))	〃
Guan Zhi Holdings Limited(GZH)	〃
Prime Base Inc. Taiwan Branch (PBI (Taiwan))	〃
LEO Systems, Inc. (LEO Systems)	Other related party
Xander International Corp. (Xander)	〃
Lohas Biotech Development Corp. (Lohas)	〃
King's Sports Co. Ltd. (Kings)	〃
Chien, Ming-Tz	Key management personnel of the Group

(3) Significant related party transactions

(A) Operating revenue:

	Years ended December 31
	2025	2024
Sales of goods:
-Sibling company	$ 2,843	$ 21
Sales of services:
-Sibling company	$ 1,224	$ 537

(a) Since the Group’s specifications of products are diverse, the specifications of products sold to related parties may not be the same as those sold to third parties, and therefore, the selling price is not comparable. The terms and conditions of transactions with related parties are similar to those with third parties.

(b) The service obtained by the Group from related parties may not be the same with the service from third parties, and therefore the service price is not comparable. The terms and conditions of transactions with related parties are similar to those with third parties.

(B) Purchases of goods and services:

	Years ended December 31
	2025	2024
Shown as operating costs
Processing fees:
Sibling company	$ 46,313	$ 52,115
Purchases:
Sibling company	$ 215	$ 980

(a) The service obtained by the Group from related parties may not be the same with the service from third parties, and therefore the service price is not comparable. The terms and conditions of transactions with related parties are similar to those with third parties.
(b) The terms and conditions of transactions for purchases from related parties are similar to those with third parties.

	December 31, 2025	December 31, 2024
Accounts receivable:
-Sibling company
FIC, Inc.	$ 126	$ 208
Prime (Guangzhou)	-	198
GZH	867	-
Others	12	47
	$ 1,005	$ 453

(D) Guarantee deposits paid

	December 31, 2025	December 31, 2024
FIC, Inc.	$ 3,229	$ 3,229

(E) Payables to related parties

	December 31, 2025	December 31, 2024
Other payables
-Sibling company
Amertek	$ 7,802	$ 13,924
GZH	5,485	-
PBI (Taiwan)	2,781	2,328
Others	358	457
	$ 16,426	$ 16,709

Long-term payables (shown as other non-current liabilities)

-Sibling company
FIC, Inc.	$ 6,664	$ 6,202

(a) Other payables are mainly payables for processing fees.

(b) The long-term payable to FIC, Inc. is due to the transfer of employees between associates. The Company committed to bear certain pension of defined benefit plans for these employees, and thus has an obligation to the related parties.

(F) Property transactions:

Acquisition of property, plant and equipment:

	Years ended December 31
	2025	2024
-Other related party
Xander	$ -	$ 91

(G) Lease transactions—lessee

(a) The Group leases buildings from First International Computer, Inc. Rental contracts are typically made for periods of five years. Rents are paid at the beginning of each month.

(b) Lease liability

i. Outstanding balance:

	December 31, 2025	December 31, 2024
Lease liability - current FIC, Inc.	$ 11,522	$ 12,113
	December 31, 2025	December 31, 2024
Lease liability - non-current FIC, Inc.	$ -	$ 11,522

ii. Interest expense

	Years ended December 31
	2025	2024
FIC, Inc.	$ 427	$ 703

(H) Service fees

	Years ended December 31
	2025	2024
-Other related parties	$ -	$ 94

(I) Entertainment expenses

	Years ended December 31
	2025	2024
-Other related parties	$ 64	$ -

(J) Endorsements and guarantees provided to related parties

The balances of endorsements and guarantees provided by related parties for the Group's loans and purchase facilities were as follows:

	December 31, 2025	December 31, 2024
Chien, Ming-Tz	$ -	$ 400,000

(4) Key management compensation

	Years ended December 31
	2025	2024
Short-term employee benefits	$ 53,983	$ 56,604
Post-employment benefits	1,738	1,276
	$ 55,721	$ 57,880

Pledged Assets

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

Pledged asset	Book value		Purpose
	December 31, 2025	December 31, 2024
Financial assets at amortized cost -current			Pledged time deposit for customs, bank borrowings, guarantee deposits for government research projects and performance guarantee of project.
	$ 21,092	$ 33,225
Financial assets at amortized cost -Non-current	-	10,000
	$ 21,092	$ 43,225

Significant Contingent Liabilities and Unrecognized Contract Commitments

(1) Contingencies

None.

(2) Commitments

None.

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

None.

Others

(1) Capital management

The Group manages its capital to ensure that it is able to continue as a going concern by optimizing its balances of debt and equity in order to maximize returns for shareholders.

The Group's capital structure comprises net liabilities (i.e., borrowings less cash and cash equivalents) and equity attributable to the owners of the Group (i.e., share capital, capital surplus, retained earnings and other equity items).

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or
Financial assets mandatorily measured at fair value	$ 318,201	$ -
Financial assets at amortized cost
Cash and cash equivalents	986,714	599,227
Financial assets at amortized cost	36,840	908,225
Accounts receivable	184,865	256,779
Accounts receivable-related parties	1,005	453
Other receivables	22,714	19,793
Guarantee deposits paid	13,345	12,203
	$ 1,563,684	$ 1,796,680
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortized cost
Accounts payable	$ 289,456	$ 254,442
Other payable	122,444	125,946
Other payables-related parties	16,426	16,709
Long-term notes and accounts payable	6,664	6,202
	$ 434,990	$ 403,299
Lease liabilities (current and non-current)	$ 85,641	$ 87,571

B. Financial risk management policies

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

(b) Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

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

ii. The Group is required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and SGD expenditures.

~56~

iii. The Group's businesses involve some non-functional currency operations (the Group's functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (In thousands of NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 6,935	31.43	$ 217,967
SGD:NTD	366	24.45	8,949
Financial liabilities
Monetary items
USD:NTD	$ 7,396	31.43	$ 232,456
	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value (In thousands of NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 10,478	32.785	$ 343,521
SGD:NTD	491	24.130	11,848
Financial liabilities
Monetary items
USD:NTD	$ 6,769	32.785	$ 221,922

iv. The total exchange gain (loss), including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to $4,941 and $21,465, respectively.

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

~57~

	Year ended December 31, 2025
Sensitivity analysis
Degree of variation	Effect on profit or loss
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%
SGD:NTD	1%
Financial liabilities
Monetary items
USD:NTD	1%
	Year ended December 31, 2024
Sensitivity analysis
Degree of variation	Effect on profit or loss
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%
SGD:NTD	1%
Financial liabilities
Monetary items
USD:NTD	1%

Price risk

i. The Group's equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group's investments in equity securities comprise shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by $1\%$ with all other variables held constant, posttax profit for the year ended December 31, 2025 would have increased/decreased by $\$3,182$ , as a result of gains/losses on equity securities classified as at fair value through profit or loss.

Cash flow and fair value interest rate risk

The Group’s main interest rate risk arises from bank borrowings with variable rates, which expose the Group to cash flow interest rate risk. The Group is not exposed to cash flow and fair value interest rate risk since the Group had no borrowings at the end of the year.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the contract cash flows of accounts receivable based on the agreed terms.

ii. The Group manages its credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

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

iv. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v. The Group classifies customer’s accounts receivable in accordance with credit risk on trade. The Group applies the modified approach and using a provision matrix based on the loss rate methodology to estimate the expected credit loss.

vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On December 31, 2025 and 2024, the Group had no written-off financial assets that are still under recourse procedures.

vii. The expected loss ratio for related parties of Group A with excellent credit was 0.2%. As of December 31, 2025 and 2024, the total carrying amount of accounts receivable and loss allowance were $1,005, $453, $0 and $0, respectively.

viii. The Group used the forecastability of National Development Council Business Indicators and Basel Committee on Banking Supervision (BCBS) to adjust historical and timely information to assess the default possibility of accounts receivable of Group B and general customers. On December 31, 2025 and 2024, the provision matrix is as follows:

~59~

(i) Group B

At December 31, 2025	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%	$ 15,467	$ 31
Up to 30 days past due	0.20%	104	-
31~60 days past due	0.20%	-	-
61~90 days past due	0.20%	-	-
91~180 days past due	100%	-	-
Over 180 days past due	100%	-	-
		$ 15,571	$ 31
At December 31, 2024	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%	$ 60,232	$ 120
Up to 30 days past due	0.20%	91,718	183
31~60 days past due	0.20%	10,233	21
61~90 days past due	0.20%	-	-
91~180 days past due	100%	-	-
Over 180 days past due	100%	-	-
		$ 162,183	$ 324

(ii) General customers

At December 31, 2025	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%~4.80%	$ 150,742	$ 1,495
Up to 30 days past due	0.20%~14.08%	20,704	1,987
31~60 days past due	0.20%~66.96%	2,332	1,213
61~90 days past due	0.20%~90.88%	2,650	2,408
91~180 days past due	100%	59	59
Over 180 days past due	100%	32	32
		$ 176,519	$ 7,194
At December 31, 2024	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%	$ 76,978	$ 153
Up to 30 days past due	0.20%	16,289	33
31~60 days past due	0.20%	1,843	4
61~90 days past due	0.20%~29.94%	-	-
91~180 days past due	100%	692	692
Over 180 days past due	100%	-	-
		$ 95,802	$ 882

ix. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable (including related parties) are as follows:

	Accounts receivable (including related parties)
	2025	2024
At January 1	$ 1,206	$ 6,200
Recognition (Reversal) of impairment loss	493	( 4,994)
Write-offs	( 171)	-
Effect of foreign exchange	393	-
Acquired through business combination	5,304	-
At December 31	$ 7,225	$ 1,206

For the years ended December 31, 2025 and 2024, the (loss) gain on recovery of impairment arising from customers' contracts are ($493) and $4,994, respectively.

x. The financial assets at amortised cost held by the Group are restricted bank deposits and time deposits with original investment period over three months. The credit risk rating has no significant abnormal situation. There are no significant expected credit losses.

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

December 31, 2025	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Accounts payable (including related parties)	$ 289,456	$ -	$ -
Other payables (including related parties)	138,870	-	-
Lease liabilities	47,920	41,610	-
Long-term notes and accounts payable	-	-	6,664

~62~

December 31, 2024	Less than 1 month	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Accounts payable
(including related parties)	$ 254,442	$ -	$ -
Other payables
(including related parties)	142,655	-	-
Lease liabilities	40,524	49,675	-
Long-term notes and accounts payable	-	-	6,202

(3) Fair value information

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

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. An active market refers to a market in which transactions for an asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in derivative financial instruments is included in Level 2.

Level 3: Unobservable inputs for the asset or liability.

B. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, financial assets measured at amortized cost, accounts receivable (including related parties), other receivables (including related parties), guarantee deposits paid, accounts payable (including related parties), other payables (including related parties), lease liabilities and long term notes and accounts payable are approximate to their fair values.

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

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

December 31,2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or Equity securities	$ 308,194	$ -	$ -	$ 308,194
Beneficiary certificates	10,007	-	-	10,007
	$ 318,201	$ -	$ -	$ 318,201

As of December 31, 2024 : None.

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

i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

	Listed stocks
Market quoted price	Closing price

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes.

iii. When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants. Forward exchange contracts are usually valued based on the current forward exchange rate.

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

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

~64~

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Refer to table 2.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 3.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
F. Significant inter-company transactions during the reporting period: Refer to table 4.

(2) Information on investees

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

(3) Information on investments in Mainland China

A. Basic information: None.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

14. Segment Information

(1) General information

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

(2) Information about segment profit or loss, assets and liabilities

The Group has only one reportable operating segment. The Group's net profit or loss before tax reported to the chief operating decision-maker is measured in a manner consistent with revenues and expenses in the statement of comprehensive income, and the Group assesses the performance of the operating segments based on the net profit or loss before tax. The Group did not provide the total assets and total liabilities amounts to chief operating decision-maker to make operating decisions.

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

	Years ended December 31
	2025	2024
Revenue from external customers	$ 1,970,085	$ 2,021,425
Segment profit or loss	($ 77,711)	($ 89,767)

(3) Reconciliation for segment income (loss)

The Group has only one operating segment. As the profit or loss of the reportable segment is consistent with that in the consolidated financial statements, reconciliation is not needed.

(4) Information on products and services

Details of revenue are as follows:

	Years ended December 31
	2025	2024
Sales revenue	$ 1,878,040	$ 1,935,931
Service revenue	92,045	85,494
	$ 1,970,085	$ 2,021,425

(5) Geographical information

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

	Years ended December 31
	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
US	$ 763,559	$ 132,006	$ 703,676	$ -
Netherlands	371,202	-	309,987	-
Brazil	3,490	-	2,490	-
Australia	224,823	-	280,167	-
Taiwan	129,636	123,361	51,108	157,135
Others	477,375	15	673,997	-
	$ 1,970,085	$ 255,382	$ 2,021,425	$ 157,135

(6) Major customer information

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

	Year ended December 31, 2025		Year ended December 31, 2024
	Revenue	Percentage of operating revenue	Revenue	Percentage of operating revenue
A	$ 1,178,624	60%	$ 1,131,812	56%

Ubiquconn Technology, Inc. and Subsidiaries

Loans to others

Year ended December 31, 2025

Table 1

No. 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended 2025	Balance at December 31, 2025	Actual amount drawn down	Interest rate (%)	Nature of loan (Note 2)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral Item	Value	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
1	E3 Displays, LLC	Phoenix Optical Polymers, LLC	Other receivables	No	$ 3,019	$ 1,679	$ 1,679	5	2	$ -	working capital	$ -	-	$ -	$ 36,022	$ 48,029	Note 3

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1)The Company is '0'.
(2)The subsidiaries are numbered in order starting from '1'.
Note 2: The nature of the loan shall be indicated as either arising from business transactions or as necessary for short-term financing.
(1)Business transactions is '1'.
(2)Necessary for short-term financing is '2'.
Note 3: Under each investee company's Procedures for Lending Funds to Others, the lending limit to any single borrower is 30% of the investee company's net worth as shown on its most recent financial statements, and the aggregate lending limit is 40% of the investee company's net worth as shown on its most recent financial statements.

Ubiqconn Technology, Inc. and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

Year ended December 31, 2025

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

Securities held by	Type	Marketable securities (Note 1)	General ledger account	As of December 31, 2025				Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
Ubiqconn	Stock	Fubon Financial Holding Co., Ltd. Preferred Shares C	Financial assets at fair value through profit or loss - current	100	$ 5,340	0.0007	$ 5,340	None
o	o	Union Bank of Taiwan Preferred Shares A	Financial assets at fair value through profit or loss - current	118	6,431	0.0027	6,431	o
o	o	TS Financial Holding Co., Ltd. Class E Preferred Shares	Financial assets at fair value through profit or loss - current	31,771	296,423	0.1278	296,423	o
o	Fund	Yuanta US 20+ Year AAA-A Corporate Bond ETF	Financial assets at fair value through profit or loss - current	77	2,476	-	2,476	o
o	o	Cathay US Corporate A- and Above 10+ Years Liquid ETF	Financial assets at fair value through profit or loss - current	71	2,494	-	2,494	o
o	o	CTBC USD Corporate 10+ Year High Grade Capped Bond ETF	Financial assets at fair value through profit or loss - current	73	2,502	-	2,502	o
o	o	CTBC Banking Senior 10+ Year Bond ETF	Financial assets at fair value through profit or loss - current	69	2,535	-	2,535	o

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Ubiquomn Technology, Inc. and Subsidiaries

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

Year ended December 31, 2025

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Compared to third party transactions		Notes/accounts receivable (payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Ubiquomn	Ruggon	Subsidiary	Sales	$ 169,014	9%	The payment period was 30 days.	NOTE	Similar transactions with non- related parties	$ 25,979	16%

NOTE : There were no similar sales prices available for comparison due to the difference in the products sold to related parties

Ubiqconn Technology, Inc. and Subsidiaries

Significant inter-company transactions during the reporting period

Year ended December 31, 2025

Table 4
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction term	Percentage of consolidated total operating revenues or total assets.(Note 3)
0	Ubiqconn	Ruggon	1	Sales	$ 169,014	The payment period was 30 days.	9%
0	"	UNA	1	Sales	41,871	The payment period was 60 days.	2%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'
(2) The subsidiaries are numbered in order starting from '1'
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: If the amount of individual transactions does not reach $1\%$ of the consolidated total revenue and $1\%$ of the consolidated total assets, they will not be disclosed; in addition, as the transactions are shown in asset-income form, the relative transactions are not disclosed.

Ubiqconn Technology, Inc. and Subsidiaries

Information on investees

Year ended December 31, 2025

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

Investor	Investee	Location	Main business activities	Initial investment amount			Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognized by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Ubiqconn	Ruggon Corporation	Taiwan	Trade of industrial computers, automotive products, electronic components and peripheral equipment.	$ 110,768	110,768	12,000	100.00	66,398	(	21,919)	(	21,919)
	UBIQCONN TECHNOLOGY (USA) Inc.	USA	Trade of industrial computers, automotive products, electronic components and peripheral equipment.	31,871	31,871	10,500	100.00	22,498		12,411		12,411
	UBIQCONN TECHNOLOGY EUROPE GmbH	Germany	Trade of industrial computers, automotive products, electronic components and peripheral equipment.	34,652	17,422	25	100.00	10,904	(	18,479)	(	18,479)
	Ubiqconn Technology Holding Inc.	USA	General investment activities	295,148	-	1,000	100.00	285,176	(	28,908)	(	28,908)
UNH	E3 Displays, LLC	USA	Provision of optical bonding and design services for touchscreens and displays	208,742	-	-	100.00	227,338	(	22,046)		Note

Note: Entry of the investment gains (losses) for the current period is not required under the applicable regulations.

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UBIQCONN TECHNOLOGY, INC. — Audit Report / Information 2025

52665_rns_2026-05-12_8db51dd8-9caf-48fc-a790-a3f1ed897610.pdf

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Assess the reasonableness of purchase price allocation in acquisition transactions

Description

How our audit addressed the matter

Existence of revenue from customers

Description

How our audit addressed the matter

Evaluation of inventories

Description

How our audit addressed the matter

Other matter – Parent company only financial reports

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

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

UBIQCONN TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

B. Translation of foreign operations

(5) Classification of current and non-current items

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

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

(6) Cash equivalents

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

(16) Interest income

(17) Other income

(21) Income tax

Price risk

13. Supplementary Disclosures

14. Segment Information

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UBIQCONN TECHNOLOGY, INC. Audit Report / Information 2025