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UBIQCONN TECHNOLOGY, INC.

PARENT COMPANY ONLY 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.
DECEMBER 31, 2025 AND 2024 PARENT COMPANY ONLY FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT TABLE OF CONTENTS

Contents	Page/Number/Index
1. Cover Page	1
2. Table of Contents	2 ~ 4
3. Independent Auditors’ Report	5 ~ 12
4. Parent Company Only Balance Sheets	13 ~ 14
5. Parent Company Only Statements of Comprehensive Income	15
6. Parent Company Only Statements of Changes in Equity	16
7. Parent Company Only Statements of Cash Flows	17 ~ 18
8. Notes to the Parent Company Only Financial Statements	19 ~ 59
(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 ~ 29
(5) Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty	29 ~ 30
(6) Details of Significant Accounts	30 ~ 46

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Contents
Page/Number/Index

(7) Related Party Transactions 46 ~ 50
(8) Pledged Assets 50
(9) Significant Contingent Liabilities and Unrecognized Contract 50 ~ 51 Commitments
(10) Significant Disaster Loss 51
(11) Significant Events after the Balance Sheet Date 51
(12) Others 51 ~ 59
(13) Supplementary Disclosures 59
(14) Segment Information 59

Statements of Major Accounting Items

Statement of Cash and Cash Equivalents Statement 1
Statement of Financial Assets Measured at Fair Value through Profit or Loss Statement 2
- Current
Statement of Accounts Receivable Statement 3
Statement of Inventories Statement 4
Statement of Changes in Investments Accounted for Using the Equity Statement 5 Method
Statement of Accounts Payable-Non-Related Parties Statement 6
Statement of Operating Revenue Statement 7
Statement of Operating Costs Statement 8
Statement of Manufacturing expenses Statement 9
Statement of Selling Expenses Statement 10

Contents
Page/Number/Index

Statement of Administrative Expenses
Statement 11

Summary Statement of Employee Benefits, Depreciation and Amortization
Note 6(20)

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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 parent company only balance sheets of Ubiqconn Technology, Inc. (the “Company”) as of December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

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

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, 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 Company’s 2025 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 parent company only financial statements are stated as follows:

Assessment of purchase price allocation in acquisition transactions

Description

The Company’s subsidiary, Ubiqconn Technology Holding Inc., 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

Our audit procedures performed in the Company and its subsidiaries (recognized as investments accounted for using equity method) for the above matter are as follows:

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 accounting treatment and disclosure and presentation for this acquisition transaction.

Existence of revenue from customers

Description

Refer to Note 4(27) for accounting policies on revenue recognition, and Note 6(15) for details of operating revenue.

The Company 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.

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How our audit addressed the matter

Our audit procedures performed in the Company and its subsidiaries (recognized as investments accounted for using equity method) for the above matter are as follows:

Assessed and tested whether the internal control procedures of sales transactions are in accordance with the Company’s internal control policies.
Selected samples of sales transactions and obtained and verified the related vouchers of such sales from customers of selected samples.

Evaluation of inventories

Description

Refer to Note 4(11) 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 Company is primarily engaged in the manufacture and sales of 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 Company 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.

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How our audit addressed the matter

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

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

Responsibilities of management and those charged with governance for the parent company only financial statements

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

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

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

Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

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

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Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

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

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

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

Chang, Shu-Chiung
Lin, Po-Chuan
For and on Behalf of PricewaterhouseCoopers, Taiwan
March 16, 2026

The accompanying parent company only 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 parent company only 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.

PARENT COMPANY ONLY 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)	$ 802,517	32	$ 470,628	17
1110	Current financial assets at fair value through profit or loss	6(2)	318,201	13	-	-
1136	Current financial assets at amortised cost	6(3) and 8	21,092	1	898,225	33
1140	Current contract assets	6(15)	7,888	-	8,858	-
1170	Accounts receivable, net	6(4)	122,103	5	237,555	9
1180	Accounts receivable due from related parties, net	7	37,840	1	33,399	1
1200	Other receivables		9,785	-	19,756	1
1210	Other receivables due from related parties	7	223	-	175	-
1220	Current tax assets		2,123	-	-	-
130X	Current inventories	6(5)	629,558	25	711,915	26
1410	Prepayments		17,454	1	9,249	1
11XX	Total current assets		1,968,784	78	2,389,760	88
Non-current assets
1535	Non-current financial assets at amortised cost	6(3) and 8	-	-	10,000	-
1550	Investments accounted for using equity method	6(6) and 7	384,976	15	109,565	4
1600	Property, plant and equipment	6(7) and 7	55,186	2	52,419	2
1755	Right-of-use assets	6(8)	50,637	2	81,332	3
1780	Intangible assets		13,103	1	15,949	1
1840	Deferred tax assets	6(21)	50,703	2	46,840	2
1920	Guarantee deposits paid	7	12,752	-	11,937	-
1990	Other non-current assets		3,497	-	5,601	-
15XX	Total non-current assets		570,854	22	333,643	12
1XXX	Total assets		$ 2,539,638	100	$ 2,723,403	100

(Continued)

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UBIQCONN TECHNOLOGY, INC.

PARENT COMPANY ONLY 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)	$ 41,457	2	$ 97,472	4
2170	Accounts payable		268,102	11	254,442	9
2180	Accounts payable to related parties	7	1,669	-	-	-
2200	Other payables	6(9)	105,877	4	115,994	4
2220	Other payables to related parties	7	11,151	1	16,690	1
2230	Current tax liabilities		-	-	10,665	1
2250	Current provisions		10,108	-	7,240	-
2280	Current lease liabilities	6(8) and 7	36,321	1	37,906	1
2300	Other current liabilities		1,682	-	1,896	-
21XX	Total current liabilities		476,367	19	542,305	20
Non-current liabilities
2550	Non-current provisions		1,394	-	2,770	-
2570	Deferred tax liabilities	6(21)	73	-	647	-
2580	Non-current lease liabilities	6(8) and 7	16,988	1	47,889	2
2600	Other non-current liabilities	7	6,905	-	6,360	-
25XX	Total non-current liabilities		25,360	1	57,666	2
2XXX	Total liabilities		501,727	20	599,971	22
Equity
	Share capital	6(12)
3110	Common stock		860,000	34	860,000	32
	Capital surplus	6(13)
3200	Capital surplus		1,106,618	43	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	-
3XXX	Total equity		2,037,911	80	2,123,432	78
3X2X	Total liabilities and equity		$ 2,539,638	100	$ 2,723,403	100

The accompanying notes are an integral part of these parent company only financial statements.

UBIQCONN TECHNOLOGY, INC.
PARENT COMPANY ONLY 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	$ 1,799,350	100	$ 1,965,764	100
5000	Operating costs	6(5)(20) and 7	( 1,369,544)	( 76)	( 1,554,396)	( 79)
5900	Net operating margin		429,806	24	411,368	21
5910	Unrealized profit from sales		363	-	307	-
5920	Realized (loss) profit from sales		( 307)	-	46	-
5950	Gross profit from operations		429,862	24	411,721	21
	Operating expenses	6(20) and 7
6100	Selling expenses		( 147,347)	( 8)	( 185,308)	( 9)
6200	Administrative expenses		( 118,429)	( 7)	( 114,650)	( 6)
6300	Research and development expenses		( 218,796)	( 12)	( 240,787)	( 12)
6450	Expected credit impairment gain	12(2)	751	-	4,100	-
6000	Total operating expenses		( 483,821)	( 27)	( 536,645)	( 27)
6900	Operating (loss) profit		( 53,959)	( 3)	( 124,924)	( 6)
	Non-operating income and expenses
7100	Interest income	6(16)	18,326	1	17,387	1
7010	Other income	6(17)	6,429	-	13,805	1
7020	Other gains and losses	6(18)	11,611	1	18,455	1
7050	Finance costs	6(19) and 7	( 1,809)	-	( 2,456)	-
7070	Share of loss of subsidiaries, associates and joint ventures	6(6)
	accounted for under equity method		( 56,895)	( 3)	( 12,060)	( 1)
7000	Total non-operating income and expenses		( 22,338)	( 1)	35,131	2
7900	Profit (loss) before income tax		( 76,297)	( 4)	( 89,793)	( 4)
7950	Tax benefit (expense)	6(21)	13,931	1	22,636	1
8200	Profit (loss) for the year		( $ 62,366)	( 3)	( $ 67,157)	( 3)
	Other comprehensive income
	Components of other comprehensive income 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 operation		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		( $ 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 parent company only financial statements.

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UBIQCONN TECHNOLOGY, INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Notes	Ordinary share	Capital surplus	Retained Earnings		Exchange differences on translation of foreign financial statements	Total equity
				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	$ 1,377,898
Loss for the year		-	-	-	( 67,157 )	-	( 67,157 )
Other comprehensive income		-	-	-	12	742	754
Total comprehensive loss		-	-	-	( 67,145 )	742	( 66,403 )
Appropriations of 2023 earnings:	6(14)
Legal reserve		-	-	25,785	( 25,785 )	-	-
Cash dividends		-	-	-	( 86,000 )	-	( 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	$ 2,123,432
Year ended December 31, 2025
Balance at January 1, 2025		$ 860,000	$ 1,106,618	$ 34,504	$ 119,889	$ 2,421	$ 2,123,432
Loss for the year		-	-	-	( 62,366 )	-	( 62,366 )
Other comprehensive income		-	-	-	( 27 )	19,872	19,845
Total comprehensive income		-	-	-	( 62,393 )	19,872	( 42,521 )
Appropriations of 2024 earnings:	6(14)
Cash dividends		-	-	-	( 43,000 )	-	( 43,000 )
Balance at December 31, 2025		$ 860,000	$ 1,106,618	$ 34,504	$ 14,496	$ 22,293	$ 2,037,911

The accompanying notes are an integral part of these parent company only financial statements.

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UBIOCONN TECHNOLOGY, INC.

PARENT COMPANY ONLY 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	($)	76,297)	($)	89,793)
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(20)	59,183		57,575
Amortization	6(20)	6,206		5,621
Expected credit impairment gain	12(2)	(751)	(	4,100)
Net gain on current financial assets designated at fair value through profit or loss	6(18)	(5,048)		-
Interest expense	6(19)	1,809		2,456
Interest income	6(16)	(18,326)	(	17,387)
Dividend income	6(17)	(436)		-
Share-based payments	6(11)	-		26,474
Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method	6(6)	56,895		12,060
Loss on disposal of property, plan and equipment	6(18)	8		4
Property, plant and equipment transferred to expenses		22		115
Gain on lease modification	6(8)(18)	-	(	85)
Unrealized profit or (loss) from sales		(56)	(	353)
Gains on write-off of past due payable	6(17)	(223)		-
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		116,203		87,047
Accounts receivable-related parties		(4,441)		6,618
Other receivables		9,529	(	3,848)
Other receivables-related parties		(47)	(	1)
Inventories		82,357		81,144
Prepayments		(11,702)	(	2,562)
Changes in operating liabilities
Contract liabilities		(56,015)		49,419
Accounts payable		13,883	(	122,698)
Accounts payable-related parties		1,669		-
Other payables		(10,774)	(	23,500)
Other payables-related parties		(5,539)	(	1,081)
Provisions		1,492		961
Other current liabilities		(214)	(	4,332)
Other non-current liabilities		519	(	692)
Cash inflow generated from operations		163,391		55,691
Interest received		18,767		16,656
Interest paid		(1,809)	(	2,456)
Income taxes paid		(3,295)	(	33,552)
Net cash flows from operating activities		177,054		36,339

(Continued)

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

	Notes	Year ended December 31
		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		( 82 )	( 876,123 )
Proceeds from disposal of financial assets at amortised cost		887,215	-
Acquisition of investments accounted for using equity method	6(6) and 7
		( 312,379 )	( 17,422 )
Acquisition of property, plant and equipment	6(23)	( 24,165 )	( 24,120 )
Proceeds from disposal of property, plant and equipment		10	21
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		236,197	( 913,502 )
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of lease principal	6(24)	( 38,362 )	( 35,829 )
Increase in short-term borrowings	6(24)	38,583	33,721
Decrease in short-term borrowings	6(24)	( 38,583 )	( 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		( 81,362 )	749,634
Net increase (decrease) in cash and cash equivalents		331,889	( 127,529 )
Cash and cash equivalents at beginning of year		470,628	598,157
Cash and cash equivalents at end of year		$ 802,517	$ 470,628

The accompanying notes are an integral part of these parent company only financial statements.

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UBIQCONN TECHNOLOGY, INC.

NOTES TO THE PARENT COMPANY ONLY 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. (“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 is primarily engaged in the manufacture and trading of industrial computers, in-vehicle products, electronic components and peripheral equipment. The Company’s stocks has been listed and traded on the Taiwan Stock Exchange in May 2024. 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 parent company only 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 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 Company’s financial condition and financial performance based on the Company’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 Company

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 Company’s financial condition and financial performance based on the Company’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
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027 (Note)
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 Company’s financial condition and financial performance based on the Company’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 parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented,

unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the following items, the parent company only 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 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”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

The functional currency of the Company is determined by the primary economic environment in which the Company operates. The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and 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 subsidiaries that have a functional currency different from the presentation currency are translated into the presentation currency

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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 Company 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.

(4) 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.

(5) 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.

(6) 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.

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

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

(7) Financial assets at amortized cost

The Company’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.

(8) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company 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.

(9) 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 Company 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 Company recognizes the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

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

(11) 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.

(12) Investments accounted for using equity method / Subsidiaries

A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company 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.

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B. Unrealized gains on transactions between the Company and its subsidiaries are eliminated to the extent of the Company's interest in the subsidiaries. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

C. The Company's share of its subsidiaries' post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company's share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognize losses proportionate to its ownership.

D. Pursuant to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners' equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

(13) Property, plant and equipment

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

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 Company 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 Company. 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;

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

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

(16) Impairment of non-financial assets

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

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(17) 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.

(18) Derecognition of financial liabilities

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

(19) 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.

(20) 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.

(21) Provisions

Provisions (including warranties) are recognized when the Company 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.

(22) 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

~26~

pension benefits that employees will receive on retirement for their services with the Company 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 Company 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.

(23) 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.

(24) 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 Company 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

~27~

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 parent company only 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 Company 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.

(25) 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.

(26) Dividends

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

(27) Revenue recognition

A. Sales revenue

(a) The Company 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 Company has objective evidence that all criteria for acceptance have been satisfied.

(b) The Company’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 Company’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.

(28) Government grants

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

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’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 Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company 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

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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 $629,558.

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	202,367	221,478
Time deposits	400,000	249,000
Cash equivalents-repurchase agreements	200,000	-
	$ 802,517	$ 470,628

A. The annual interest rate of the Company's repurchased bond was 1.32% for the year. The bond matures within three months and is a highly liquid cash equivalent.
B. The Company 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 Company had classified cash and cash equivalents which were 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:

Years 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 Company 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	$ -	$ 865,000
Restricted bank deposits	21,092	33,225
Non-current items:
Restricted bank deposits	-	10,000
	$ 21,092	$ 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 Company was $21,092 and $908,225, respectively.

C. Details of the Company'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) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 122,348	$ 238,722
Less: Allowance for uncollectible accounts	( 245)	( 1,167)
	$ 122,103	$ 237,555

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	$ 153,871	$ 158,536
Up to 30 days past due	6,263	100,618
31 to 90 days past due	-	12,077
91 to 180 days past due	54	692
Over 180 days past due	-	198
	$ 160,188	$ 272,121

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 $365,786 and $5,267, 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 Company's accounts receivable (including related parties) was $159,943 and $270,954, respectively.

D. The Company 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	$ 446,538	($ 94,486)	$ 352,052
Work in progress	190,932	( 24,333)	166,599
Finished goods	99,312	( 7,549)	91,763
Inventory in transit	19,144	-	19,144
	$ 755,926	($ 126,368)	$ 629,558

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	115,688	( 3,931)	111,757
Inventory in transit	19,252	-	19,252
	$ 822,107	($ 110,192)	$ 711,915

The Company’s operating costs recognized for the year:

	Years ended December 31
	2025	2024
Cost of goods sold	$ 1,318,718	$ 1,499,605
Loss (reversal gain) on decline in market value	16,176	( 9,692)
Cost of service and warranty	34,650	64,483
	$ 1,369,544	$ 1,554,396

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

(6) Investments accounted for using equity method

A. Details are as follows:

	December 31, 2025		December 31, 2024
	Shareholding ratio	Carrying amount	Shareholding ratio	Carrying amount
Subsidiaries:
Ubiqconn Technology (USA) Inc.	100%	$ 22,498	100%	$ 10,353
Ruggon Corporation	100%	66,398	100%	88,317
Ubiqconn Technology Europe GmbH.	100%	10,904	100%	10,895
Ubiqconn Technology Holding Inc.	100%	285,176	-	-
		$ 384,976		$ 109,565

B. Details of the Company’s investment income (loss) recognized for the years ended December 31, 2025 and 2024 are as follows:

	Years ended December 31
	2025	2024
Subsidiaries:
Ubiqconn Technology (USA) Inc.	$ 12,411	($ 8,474)
Ruggon Corporation	( 21,919)	2,696
Ubiqconn Technology Europe GmbH.	( 18,479)	( 6,282)
Ubiqconn Technology Holding Inc.	( 28,908)	-
	($ 56,895)	($ 12,060)

C. Refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2025 for the information regarding the Company's subsidiaries.

D. In July 2024, the Company established a subsidiary, UEG (shown as investment accounted for using the equity method), by $17,422 and acquired 25 thousand shares.

E. For the year ended December 31, 2025, the Company increased its capital of the subsidiary, UEG (shown as investment accounted for using the equity method), by $17,230.

F. For the year ended December 31, 2025, the Company increased its capital of the subsidiary, UNH (shown as investment accounted for using the equity method), by $295,149. In July 2025, UNH acquired all membership of E3 Displays, LLC. Refer to Note 4(30) and Note 6(25) in the Company's consolidated financial statements as of and for the year ended December 31, 2025.

(7) Property, plant and equipment

	2025
	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Total
January 1, 2025
Cost	$ 84,872	$ 19,954	$ 14,871	$ 12,701	$ 132,398
Accumulated depreciation and impairment	( 53,669)	( 11,017)	( 7,986)	( 7,307)	( 79,979)
	$ 31,203	$ 8,937	$ 6,885	$ 5,394	$ 52,419
January 1, 2025	$ 31,203	$ 8,937	$ 6,885	$ 5,394	$ 52,419
Additions	15,470	6,668	648	2,633	25,419
Disposals	-	( 18)	-	-	( 18)
Reclassifications	-	( 22)	-	-	( 22)
Depreciation	( 11,193)	( 5,214)	( 3,909)	( 2,296)	( 22,612)
December 31, 2025	$ 35,480	$ 10,351	$ 3,624	$ 5,731	$ 55,186
December 31, 2025
Cost	$ 100,342	$ 26,381	$ 13,039	$ 15,334	$ 155,096
Accumulated depreciation and impairment	( 64,862)	( 16,030)	( 9,415)	( 9,603)	( 99,910)
	$ 35,480	$ 10,351	$ 3,624	$ 5,731	$ 55,186

	2024
	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Total
January 1, 2024
Cost	$83,185	$14,790	$13,467	$12,604	$124,046
Accumulated
depreciation
and impairment	(54,842)	(6,902)	(4,203)	(4,981)	(70,928)
	$28,343	$7,888	$9,264	$7,623	$53,118
January 1, 2024	$28,343	$7,888	$9,264	$7,623	53,118
Additions	13,918	5,317	1,404	97	20,736
Disposals	-	(25)	-	-	(25)
Reclassifications	(115)	-	-	-	(115)
Depreciation	(10,943)	(4,243)	(3,783)	(2,326)	(21,295)
December 31, 2024	$31,203	$8,937	$6,885	$5,394	$52,419
December 31, 2024
Cost	$84,872	$19,954	$14,871	$12,701	$132,398
Accumulated
depreciation
and impairment	(53,669)	(11,017)	(7,986)	(7,307)	(79,979)
	$31,203	$8,937	$6,885	$5,394	$52,419
A. The Company had no interest expense which was capitalized as part of property, plant and equipment.
B. The Company’s property, plant and equipment were all for its own use.
C. The Company had no property, plant and equipment pledged to others as collateral.
(8) Leasing arrangements—lessee
Right-of-use assets
A. The Company 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.

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

	December 31, 2025	December 31, 2024
	Carrying amount	Carrying amount
Buildings and structures	$ 50,520	$ 81,088
Other equipment	117	244
	$ 50,637	$ 81,332
	Years ended December 31
	2025	2024
	Depreciation charge	Depreciation charge
Buildings and structures	$ 36,444	$ 36,153
Other equipment	127	127
	$ 36,571	$ 36,280

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	$ 1,697	$ 2,412
Expense on short-term lease contracts	923	666
Gain on lease modification	-	85

F. For the years ended December 31, 2025 and 2024, the Company's total cash outflow for leases were $40,982 and $38,907, respectively.

Lease liabilities
Carrying amount of lease liabilities	December 31, 2025	December 31, 2024
Current	$ 36,321	$ 37,906
Non-current	$ 16,988	$ 47,889

(9) Other payables

	December 31, 2025	December 31, 2024
Salary and bonus payable	$ 64,834	$ 71,199
Material processing fees payable	1,982	4,850
Professional service fees payable	3,898	8,573
Insurance expense payable	5,719	6,571
Freight expense payable	1,076	1,897
Payable on machinery and equipment	2,954	1,700
Others	25,414	21,204
	$ 105,877	$ 115,994

(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. The Company has established a defined contribution pension plan (New Plan) under the Labor Pension Act, covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes 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. The pension costs under the defined contribution pension plan were $16,354 and $15,986 for the years ended December 31, 2025 and 2024, respectively.

(11) Share-based payment

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

Type of arrangement	Grant date	Quantity granted (in thousands)	Contract Period	Vesting conditions
Ubiqconn Technology, Inc.-
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)
Ubiqconn Technology, Inc.-
Cash capital increase reserved
for employee preemption	2024.04.12	$96.80	$65	48.59%	0.07year	1.22%	$31.8579

Note: Expected price volatility rate was estimated by using the daily historical stock price volatility of the Company’s and FIC Global, Inc. for the three months preceding the grant date.

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

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

(12) Share capital

A. As of December 31, 2025, the Company’s authorised 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 Company’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 cash capital increase includes public underwriting, competitive auction and employee subscription. The public underwriting and employee subscription prices are NT$65 per share, and the weighted average price of the competitive auction is NT$84.76 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 Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised 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

~38~

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 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	$ 1,799,350	$ 1,965,764

A. Disaggregation of revenue from contracts with customers

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

~40~

2025	Sales Revenue	Service Revenue	Total
Revenue from external customer contracts	$ 1,720,913	$ 78,437	$ 1,799,350
Timing of revenue recognition
At a point in time	$ 1,720,913	$ -	$ 1,720,913
Over time	-	78,437	78,437
	$ 1,720,913	$ 78,437	$ 1,799,350
2024	Sales Revenue	Service Revenue	Total
Revenue from external customer contracts	$ 1,880,338	$ 85,426	$ 1,965,764
Timing of revenue recognition
At a point in time	1,880,338	-	1,880,338
Over time	-	85,426	85,426
	$ 1,880,338	$ 85,426	$ 1,965,764

B. Contract assets and liabilities

(a) The Company 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	$ 25,495	$ 71,701	$ 30,755
Contract liabilities
-service contracts	15,962	25,771	17,298
	$ 41,457	$ 97,472	$ 48,053

(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	$ 47,395	$ 1,594
Service contract	20,155	13,859
	$ 67,550	$ 15,453

~41~

(16) Interest income

	Years ended December 31
	2025	2024
Interest income from bank deposits	$ 2,784	$ 15,854
Interest income from financial assets measured at amortized cost	4,608	1,398
Other interest income	10,934	135
	$ 18,326	$ 17,387

(17) Other income

	Years ended December 31
	2025	2024
Government grants income	$ 50	$ 9,635
Freight revenue	651	527
Gains on write-off of past due payable	223	-
Dividend income	436	-
Other income	5,069	3,643
	$ 6,429	$ 13,805

(18) Other gains and losses

	Years ended December 31
	2025	2024
Net foreign exchange gains	$ 6,582	$ 19,323
Gains on financial assets at fair value through profit or loss	5,048	-
Gain on lease modification	-	85
Loss on disposals of property, plant and equipment	( 8)	( 4)
Other losses	( 11)	( 949)
	$ 11,611	$ 18,455

(19) Finance costs

	Years ended December 31
	2025	2024
Interest expense on bank borrowings	$ 112	$ 44
Interest expense on lease liabilities	1,697	2,412
	$ 1,809	$ 2,456

(20) Employee benefit expense

	Year ended December 31, 2025
	Operating cost	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 63,471	$ 282,279	$ 345,750
Labour and health insurance fees	7,639	23,792	31,431
Pension costs	3,266	13,157	16,423
Directors' remuneration	-	5,498	5,498
Other personnel expenses	4,112	11,499	15,611
Depreciation charge	33,235	25,948	59,183
Amortization charge	8	6,198	6,206
	Year ended December 31, 2024
	Operating cost	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 77,015	$ 309,160	$ 386,175
Labour and health insurance fees	8,721	23,148	31,869
Pension costs	3,251	12,806	16,057
Directors' remuneration	-	117	117
Other personnel expenses	4,569	10,023	14,592
Depreciation charge	33,189	24,386	57,575
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.

E. For the years ended December 31, 2025 and 2024, the Company had 363 and 388 employees, including 5 and 6 non-employee directors, respectively.

(a) For the years ended December 31, 2025 and 2024, the average employee benefit expense amounted to $1,142 and $1,175, respectively.

(b) For the years ended December 31, 2025 and 2024, the average employees' salaries amounted to $965 and $1,012, respectively.

(c) Average employees salaries increased by (5%).
(d) The Company has set up an audit committee, and therefore there are no supervisors in the Company and the disclosure of information about supervisors' remuneration is not required.

F. The Company's compensation policy

(a) The overall employee compensation levels are determined by external competitiveness and internal fairness to effectively attract and retain talents.
(b) Link employees' compensation with their performance by using the performance management system to provide motivation for employees' development and drive positive growth in the Company.
(c) Link employees' compensation with their achievement of the Company's long-term and short-term targets, the time spent by the individual, their positions and overall performance to motivate employees.
(d) Set up the Compensation Committee to effectively review the Company's directors' and management's overall remuneration.
(e) The directors' emoluments are determined in accordance with the Company's Articles of Incorporation approved by the shareholders at their meeting, considering the overall results of the evaluation of the performance of the Board of Directors, the Company's operating performance, future operations and the risk appetite as proposed by the shareholders at their meeting, and is then allocated to individual directors based on the degree of each directors' participation in the operation of the Company and the value of their contributions.
(f) The managers' salary is determined based on the general pay levels in the same industry, education and experience background, professional skill and the results of performance assessment.

(21) Income tax

A. Income tax expense (profit)

	Years ended December 31
	2025	2024
Current tax:
Current tax on profits for the year	$ -	$ -
Tax on undistributed surplus earnings	-	4,039
Prior year income tax over estimation	( 9,494)	( 11,128)
Total current tax	( 9,494)	( 7,089)
Deferred tax:
Origination and reversal of temporary differences	( 4,437)	( 15,547)
Total deferred tax	( 4,437)	( 15,547)
Income tax profit	($ 13,931)	($ 22,636)

B. Reconciliation between income tax expense (profit) and accounting profit

	Years ended December 31
	2025	2024
Tax calculated based on loss before tax and statutory tax rate	($ 15,257)	($ 17,959)
Expenses disallowed by tax regulation	34	-
Tax exempt income by tax regulation	( 594)	( 539)
Temporary differences not recognized as deferred tax assets	11,379	2,951
Changes in the assessment of the realizability of deferred tax assets	1	-
Prior year income tax over estimation	( 9,494)	( 11,128)
Tax on undistributed surplus earnings	-	4,039
Income tax profit	($ 13,931)	($ 22,636)

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	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 loss	19,810	( 216)	19,594
	$ 46,840	$ 3,863	$ 50,703
—Deferred tax liabilities:
Unrealized exchange gain	($ 586)	$ 586	$ -
Others	( 61)	( 12)	( 73)
	($ 647)	$ 574	($ 73)
	$ 46,193	$ 4,437	$ 50,630

~45~

	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 loss	-	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 Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority.

(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	$ 25,419	$ 20,736
Add: Opening balance of payable on equipment (including related parties)	1,700	5,084
Less: Ending balance of payable on equipment (including related parties)	( 2,954)	( 1,700)
Cash paid during the year	$ 24,165	$ 24,120

(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	$ 85,795	($ 38,362)	$ 5,876	$ 53,309
	2024
	January 1	Changes in cash flow from financing activities	Changes in other non-cash items	December 31
Lease liabilities	$ 113,195	($ 35,829)	$ 8,429	$ 85,795

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 Company
FIC Global, Inc.	Parent company
Ubiqconn Technology (USA) Inc. (UNA)	Subsidiaries
Ubiqconn Technology Europe GmbH (UEG)	〃
Ruggon Corporation (Ruggon)	〃
Ubiqconn Technology Holding Inc. (UNH)	〃
E3 Displays,LLC (E3D)	〃
First International Computer, Inc. (FIC, Inc.)	Sibling company
Amertek Computer (Shenzhen) Co., Ltd. (Amertek)	〃
Prime Base Inc. (PBI)	〃
Prime Technology (Guangzhou) Inc. (Prime (Guangzhou))	〃
Prime Base Inc. Taiwan Branch (PBI (Taiwan))	〃
Guan Zhi Holdings Limited (GZH)	〃
Xander International Corp. (Xander)	Other related party
Lohas Biotech Development Corp. (Lohas)	〃
King's Sports Co. Ltd. (Kings)	〃
Chien, Ming-Tz	Key management personnel of the Company

(3) Significant related party transactions

(A) Operating revenue:

	Years ended December 31
	2025	2024
Sales of goods:
-Subsidiary
Ruggon	$ 169,014	$ 288,545
UNA	41,871	27,013
Others	54	-
-Sibling company	2,843	21
	$ 213,782	$ 315,579
Sales of services:
-Subsidiary	$ 289	$ 167
-Sibling company	1,224	537
	$ 1,513	$ 704

Since the Company'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) Purchase of goods and services:

	Years ended December 31
	2025	2024
Shown as operating costs
Processing fees:
Sibling company	$ 46,313	$ 52,115
Purchases:
Subsidiary	$ 1,669	$ -
Sibling company	94	980
	$ 1,763	$ 980

The service obtained by the Company 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.

	December 31, 2025	December 31, 2024
Accounts receivable:
-Subsidiary
Ruggon	$ 25,979	$ 28,028
UNA	10,605	4,918
Others	251	-
-Sibling company
Others	1,005	453
	$ 37,840	$ 33,399
	December 31, 2025	December 31, 2024
Other receivables
-Subsidiary	$ 223	$ 175

(D) Property transactions:

(a) Acquisition of property, plant and equipment:

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

(b) Acquisition of financial assets:

i. In July 2024, the Company established a subsidiary, UEG, (shown as investment accounted for using the equity method) by $17,422 and acquired 25 thousand shares.

ii. For the year ended December 31, 2025, the Company increased its capital of the subsidiaries, UEG and UNH (shown as investment accounted for using the equity method), by $17,230 and $295,149, respectively.

(E) Guarantee deposits paid

	December 31, 2025	December 31, 2024
FIC, Inc.	$ 2,962	$ 2,962
(F) Payables to related parties
	December 31, 2025	December 31, 2024
Accounts payable
-Subsidiary	$ 1,669	$ -
Other payables
-Subsidiary	$ 241	$ 11
-Sibling company
Amertek	7,802	13,924
PBI (Taiwan)	2,781	2,328
Others	327	427
	$ 11,151	$ 16,690
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 and service 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.

(G) Lease transactions—lessee

(a) The Company 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.	$ 10,662	$ 11,198
	December 31, 2025	December 31, 2024
Lease liability - non-current FIC, Inc.	$ -	$ 10,662

ii. Interest expense

	Years ended December 31
	2025	2024
FIC, Inc.	$ 395	$ 650
(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 Company'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	$ 40,051	$ 49,650
Post-employment benefits	1,135	1,126
	$ 41,186	$ 50,776

8. Pledged Assets

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

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

9. 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 Company 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 Company’s capital structure comprises net liabilities (i.e., borrowings less cash and cash equivalents) and equity attributable to the owners of the Company (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 loss
Financial assets mandatorily measured at fair value through profit or loss	$ 318,201	$ -
Financial assets at amortized cost
Cash and cash equivalents	802,517	470,628
Financial assets at amortized cost	21,092	908,225
Accounts receivable	122,103	237,555
Accounts receivable-related parties	37,840	33,399
Other receivables	9,785	19,756
Other receivables-related parties	223	175
Guarantee deposits paid	12,752	11,937
	$ 1,324,513	$ 1,681,675
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortized cost
Accounts payable	$ 268,102	$ 254,442
Accounts payable-related parties	1,669	-
Other payable	105,877	115,994
Other payables-related parties	11,151	16,690
Long-term notes and accounts payable	6,664	6,202
	$ 393,463	$ 393,328
Lease liabilities (current and non-current)	$ 53,309	$ 85,795

B. Financial risk management policies

(a) The Company'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) Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company's operating units.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company 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 Company is required to hedge their entire foreign exchange risk exposure with the Company treasury. Exchange rate risk is measured through a forecast of highly probable USD and SGD expenditures.

iii. The Company's businesses involve some non-functional currency operations (the Company'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	$ 6,464	31.43	$ 203,164
SGD:NTD	366	24.45	8,949
Non-monetary items
USD:NTD	$ 9,789	31.43	$ 307,674
Financial liabilities
Monetary items
USD:NTD	$ 6,567	31.43	$ 206,401

~53~

	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	$ 9,319	32.785	$ 305,523
SGD:NTD	491	24.130	11,848
Non-monetary items
USD:NTD	$ 316	32.785	$ 10,353
Financial liabilities
Monetary items
USD:NTD	$ 5,915	32.785	$ 193,923

iv. The total exchange (loss) gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2025 and 2024, amounted to $6,582 and $19,323, respectively.

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

	Year ended December 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	$ 2,032	$ -
SGD:NTD	1%	89	-
Financial liabilities
Monetary items
USD:NTD	1%	$ 2,064	$ -

~54~

Year ended December 31, 2024

	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	$ 3,055	$ -
SGD:NTD	1%	118	-
Financial liabilities
Monetary items
USD:NTD	1%	$ 1,939	$ -

Price risk

i. The Company’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 Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

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

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company 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 Company manages its credit risk taking into consideration the entire Company’s concern. According to the Company’s credit policy, the Company is responsible for managing and analysing the credit risk for each of its 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 Company adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.

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

vi. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights. On December 31, 2025 and 2024, the Company 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 $37,840, $33,399, $0 and $0, respectively.

viii. The Company 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:

~55~

(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	100.00%	-	-
Over 180 days past due	100.00%	-	-
		$ 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%	10,234	20
61~90 days past due	0.20%	-	-
91~180 days past due	100.00%	-	-
Over 180 days past due	100.00%	-	-
		$ 162,184	$ 323

(ii) General customers

At December 31, 2025	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%	$ 101,516	$ 203
Up to 30 days past due	0.20%	5,261	11
31~60 days past due	0.20%	-	-
61~90 days past due	0.20%	-	-
91~180 days past due	100.00%	-	-
Over 180 days past due	100.00%	-	-
		$ 106,777	$ 214
At December 31, 2024	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%	$ 65,468	$ 131
Up to 30 days past due	0.20%	8,535	17
31~60 days past due	0.20%	1,843	4
61~90 days past due	21.74%	-	-
91~180 days past due	100.00%	692	692
Over 180 days past due	100.00%	-	-
		$ 76,538	$ 844

ix. Movements in relation to the Company 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	$ 1,167	$ 5,267
Reversal of impairment loss	( 751)	( 4,100)
Write-offs	( 171)	-
At December 31	$ 245	$ 1,167

For the years ended December 31, 2025 and 2024, the impairment gain on recovery of impairment arising from customers' contracts are $751 and $4,100, respectively.

x. The financial assets at amortised cost held by the Company 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 Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii. The table below analyses the Company'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)	$ 269,771	$ -	$ -
Other payables
(including related parties)	117,028	-	-
Lease liabilities	37,175	17,202	-
Long-term notes and accounts payable	-	-	6,664
December 31, 2024	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Accounts payable
(including related parties)	$ 254,442	$ -	$ -
Other payables
(including related parties)	132,684	-	-
Lease liabilities	39,576	48,806	-
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 Company'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 Company’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 and liabilities 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
Asset
Recurring fair value measurements
Financial assets at fair value through profit or loss
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 Company used to measure fair value are as follows:

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

Market quoted price	Listed stocks
	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 Company 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

~58~

be able to capture all relevant factors of the Company'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 Company'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.

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

Not applicable.

~59~

Ubiquom Technology, Inc.

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.

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.

Ubiqconn Technology, Inc.

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
Ubiqconn	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.

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.

Information on investees

Year ended December 31, 2025

in thousands of NTD/ number of shares in thousands

(Except as otherwise indicated)

Table 5

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.

Statement 1, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF CASH AND CASH EQUIVALENTS

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 1

Item	Description	Amount
Petty cash		$ 150
Bank deposits
TWD demand deposits and checking deposits		134,908
Foreign currency demand deposits	USD 1,846 thousand, exchange rate 31.43	58,019
	Other foreign currencies	9,440
TWD time deposit		400,000
Cash equivalents-repurchase agreements		200,000
		$ 802,517

Statement 2, Page1

UBIO/CONN TECHNOLOGY, INC.

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

DECEMBER 31, 2025

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

Statement 2

Name of Financial Instrument	Description	Shares(in thousands)	Face Value(in dollars)	TotalAmount	InterestRate	Cost	Fair Value		Note
							Unit Price(in dollars)	TotalAmount
Listed Stocks - Current
Fubon Financial Holding Co., Ltd.
Preferred Shares C	Stock	100	$ 10	$ 100	-	$ 5,201	$ 53.40	$ 5,340	None
Union Bank of Taiwan
Preferred Shares A	〃	118	10	1,180	-	6,438	54.50	6,431	〃
TS Financial Holding Co., Ltd.
Class E Preferred Shares	〃	31,771	10	317,710	-	294,177	9.33	296,423	〃
						$ 305,816		$ 308,194
Valuation Adjustment						2,378
						$ 308,194

UBIQCONN TECHNOLOGY, INC.
STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT (Cont.)
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Statement 2

Name of Financial Instrument	Description	Shares (in thousands)	Face Value (in dollars)	Total Amount	Interest Rate	Cost	Fair Value		Note
							Unit Price (in dollars)	Total Amount
Listed Funds - Current
Yuanta US 20+ Year
AAA-A Corporate Bond ETF	Beneficiary certificates	77	-	-	-	$ 2,504	$ 32.15	$ 2,476	None
Cathay US Corporate A- and Above 10+ Years Liquid ETF	〃	71	-	-	-	2,481	35.13	2,494	〃
CTBC USD Corporate 10+ Year
High Grade Capped Bond ETF	〃	73	-	-	-	2,488	34.27	2,502	〃
CTBC Banking Senior 10+ Year Bond ETF	〃	69	-	-	-	2,489	36.74	2,535	〃
						$ 9,962		$ 10,007
Valuation Adjustment						45
						$ 10,007

Note: 1. The names of financial instruments should be separately presented, including equities, corporate bonds, government bonds, and other marketable securities.
2. The interest payment and principal repayment dates of corporate bonds and government bonds should be disclosed in the summary column.
3. In accordance with paragraph 9 of IFRS 7, Financial Instruments: Disclosures, when an entity designates a financial asset that would otherwise be measured at amortized cost or a debt instrument investment measured at fair value through other comprehensive income as measured at fair value through profit or loss, the entity shall disclose the amount of the change in fair value attributable to changes in credit risk.

Statement 2, Page2

Statement 3, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

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

Statement 3

Client name	Amount	Note
Accounts receivable
Client A	$ 15,571
Client B	16,500
Client C	8,642
Client D	9,000
Client E	11,315
Client F	42,527
Client G	8,085
Others	10,708	Balance of each client has not exceeded 5% of total account balance.
	122,348
Less: Allowance for uncollectible accounts	( 245)
	$ 122,103
Accounts receivable– related parties
Ruggon Corporation	$ 25,979
Ubiqconn Technology (USA) Inc.	10,605
Others	1,256	Balance of each client has not exceeded 5% of total account balance.
	$ 37,840

Statement 4, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

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

Statement 4

Item	Amount		Note
	Cost	Net realisable value
Raw materials	$ 446,538	$ 357,755	The allowance for inventory
Work in progress	190,932	193,589	valuation losses is evaluated at
Finished goods	99,312	99,257	the lower of cost and net realizable value.
Inventory in transit	19,144	19,144
	$ 755,926	$ 669,745
Less: Loss on decline
in market value	( 126,368)
	$ 629,558

UBIQCONN TECHNOLOGY, INC.
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Statement 5

Name	Balance at January 1, 2025		Addition (Note 1)		Decrease		Investment income (loss)	Other changes (Note 2)	Balance at December 31, 2025			Market Value		Collateral or pledged
	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Amount			Number of shares (in thousands)	%	Amount	Unit price (in dollars)	Total price
Ruggon Corporation	12,000	$ 88,317	-	$ -	-	$ -	($ 21,919)	$ -	12,000	100	$ 66,398	5.53	$ 66,398	None
Ubiqconn	10,500	10,353		-	-	-	12,411	( 266)	10,500	100	22,498	2.14	22,498	None
Technology (USA) Inc.
Ubiqconn	25	10,895		17,230	-	-	( 18,479)	1,258	25	100	10,904	436.16	10,904	None
Technology Europe GmbH
Ubiqconn
Technology Holding Inc.	-	-	1,000	295,149	-	-	( 28,908)	18,935	1,000	100	285,176	285.18	285,176	None
		$ 109,565		$ 312,379		$ -	($ 56,895)	$ 19,927			$ 384,976		$ 384,976

(Note 1) : The addition refers to the number of new shares subscribed for the cash capital increase of the investees for the year.
(Note 2) : Other changes are accounted for using the equity method and adjusted investee's accumulated translation adjustments, and changes in unrealized gains.

Statement 5, Page1

Statement 6, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF ACCOUNTS PAYABLE-NON-RELATED PARTIES

DECEMBER 31, 2025

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

Statement 6
| Name | Amount | Note |
| --- | --- | --- |
| Non-related party | | |
| Supplier A | $ 48,319 | |
| Supplier G | 42,238 | |
| Supplier I | 34,881 | |
| Others | 142,664 | Balance of each client has not exceeded 5% of total account balance. |
| | $ 268,102 | |

Statement 7, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 7
| Item | Volume (unit) | Amount | Note |
| --- | --- | --- | --- |
| Sales revenue | | | |
| Industrial computers | 95,327 | $ 1,472,687 | |
| Embedded boards | 5,770 | 14,184 | |
| Others | 10,268,281 | 234,042 | |
| | | 1,720,913 | |
| Service revenue | | 78,437 | |
| | | $ 1,799,350 | |

Statement 8, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 8

Item	Amount
Raw materials used
Beginning raw materials (including beginning raw materials in transit)	$ 517,712
Add: Raw materials purchased	1,116,239
Less: Ending raw materials (including ending raw materials in transit)	( 465,682)
Used raw materials transferred to expenses and others	( 12,105)
Raw material used for the year	1,156,164
Direct labor	20,448
Manufacturing expense	153,571
Manufacturing cost	1,330,183
Add: Beginning work in progress	188,707
Purchased work in progress	4,715
Less: Ending work in progress	( 190,932)
Work in progress transferred to expenses	( 19,879)
Finished goods	1,312,794
Add: Beginning finished goods	115,688
Purchased finished goods	420
Less: Ending finished goods	( 99,312)
Finished goods transferred to expenses	( 10,872)
Cost of goods sold of finished goods	1,318,718
Cost of service and warranty	34,650
Loss of decline in market value	16,176
Cost of goods sold	$ 1,369,544

Statement 9, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF MANUFACTURING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 9
| Item | Amount | Note |
| --- | --- | --- |
| External processing costs | $ 53,105 | |
| Wages and salaries | 36,459 | |
| Depreciation expense | 32,605 | |
| Insurance expense | 8,184 | |
| Others | 23,218 | Balance of each miscellaneous account has not exceeded 5% of total account balance. |
| | $ 153,571 | |

Statement 10, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 10
| Item | Amount | Note |
| --- | --- | --- |
| Wages and salaries | $ 81,159 | |
| Technical service fees | 17,770 | |
| Insurance expense | 7,894 | |
| Travel and transportation expenses | 8,185 | |
| Others | 32,339 | Balance of each selling account has not exceeded 5% of total account balance. |
| | $ 147,347 | |

Statement 11, Page1

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 11

Item	Amount	Note
Wages and salaries	$ 65,688
Professional service fees	12,790
Depreciation expense	9,690
Others	30,261	Balance of each miscellaneous account has not exceeded 5% of total account
	$ 118,429

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UBIQCONN TECHNOLOGY, INC. — Audit Report / Information 2025

52665_rns_2026-05-12_0bda34e3-3fb8-42ab-a3a0-4675d20151a5.pdf

UBIQCONN TECHNOLOGY, INC.

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Assessment 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

Responsibilities of management and those charged with governance for the parent company only financial statements

UBIQCONN TECHNOLOGY, INC.

UBIQCONN TECHNOLOGY, INC.

PARENT COMPANY ONLY BALANCE SHEETS

UBIQCONN TECHNOLOGY, INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

UBIOCONN TECHNOLOGY, INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

UBIQCONN TECHNOLOGY, INC.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

B. Contract assets and liabilities

(16) Interest income

(17) Other income

(18) Other gains and losses

(19) Finance costs

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

(1) Contingencies

Price risk

Cash flow and fair value Interest rate risk

(b) Credit risk

13. Supplementary Disclosures

14. Segment Information

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF CASH AND CASH EQUIVALENTS

FOR THE YEAR ENDED DECEMBER 31, 2025

UBIO/CONN TECHNOLOGY, INC.

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF ACCOUNTS PAYABLE-NON-RELATED PARTIES

DECEMBER 31, 2025

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF MANUFACTURING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

UBIQCONN TECHNOLOGY, INC.

STATEMENT OF ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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UBIQCONN TECHNOLOGY, INC. Audit Report / Information 2025