VOLTRONIC — Audit Report / Information 2025

Apr 13, 2026

Voltronic Power Technology Corp.

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

The key audit matter identified in the Company's parent company only financial statements for the year ended December 31, 2025 is described as follows:

Validity of Occurrence of Operating Revenue

Since the Company is listed on the Taiwan Stock Exchange, the management may be under pressure to meet the profit targets in order to maintain shareholders' and external investors' expectations for revenue growth. Furthermore, operating revenue is one of the important indicators to measure the Company's profitability and operating performance, and revenue recognition is inherently a higher risk. Among all the customers in 2025, operating revenue came from customers whose transaction amounts have increased and whose total transaction amounts for the whole year were significant, with the transaction amount accounting for 35% of the operating revenue. Therefore, we identified whether these significant transactions actually occurred as a key audit matter. The revenue recognition accounting policy is disclosed in Note 4 to the Company's parent company only financial statements.

In response, we performed the following audit procedures:

• 1. We obtained an understanding of the internal controls related to the actual occurrence of operating revenue from the aforementioned sales transactions and assessed the operating effectiveness of the design and implementation of these controls.
• 1. We performed substantive testing of the aforementioned transactions. Through sampling from the transactions, we further examined the shipping documents and the recovery of receivables to verify the occurrence of the transactions.

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 maintain professional skepticism throughout the audit. We also:

• 1. 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.
• 1. 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.
• 1. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• 1. 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.
• 1. 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.
• 1. Obtain sufficient and appropriate audit evidence regarding the financial information of 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 audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audits resulting in this independent auditors' report are Cheng-Chuan Yu and Wei-Lun Hung.

Deloitte & Touche Taipei, Taiwan Republic of China

March 6, 2026

Notice to Readers

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

For the convenience of readers, the independent auditors' report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and parent company only financial statements shall prevail.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	\$ 4,247,187	17	\$ 4,692,273	20
Notes receivable (Notes 4, 8 and 20)	23,118	-	104,745	-
Trade receivables (Notes 4, 8 and 20)	2,622,641	11	2,735,828	11
Trade receivables from related parties (Notes 4, 8, 20 and 28)	145,056	1	173,542	1
Other receivables (Notes 4 and 8)	19,570	-	28,602	-
Inventories (Notes 4 and 9)	152,728	1	136,027	1
Other current assets (Note 14)	11,831	-	10,215	-
Total current assets	7,222,131	30	7,881,232	33
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 4, 7 and 27)	101,368	-	61,417	-
Investments accounted for using the equity method (Notes 4 and 10)	14,573,634	59	13,362,219	56
Property, plant and equipment (Notes 4, 11 and 29)	2,437,838	10	2,479,863	11
Right-of-use assets (Notes 4 and 12)	662	-	646	-
Other intangible assets (Notes 4 and 13)	4,599	-	8,261	-
Deferred tax assets (Notes 4 and 22)	143,984	1	35,259	-
Other non-current assets (Notes 4 and 14)	1,173	-	1,565	-
Total non-current assets	17,263,258	70	15,949,230	67
TOTAL	\$ 24,485,389	100	\$ 23,830,462	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Contract liabilities - current (Notes 4 and 20)	\$ 232,376	1	\$ 381,310	2
Notes payable (Note 16)	-	-	6	-
Trade payables (Note 16)	20,631	-	17,713	-
Trade payables to related parties (Note 28)	13,114,860	54	11,916,219	50
Other payables (Note 17)	574,279	2	535,384	2
Current tax liabilities (Notes 4 and 22)	351,242	2	289,687	1
Lease liabilities - current (Notes 4 and 12)	354	-	686	-
Current portion of long-term borrowings (Notes 15 and 29)	97,860	-	97,860	-
Other current liabilities (Note 17)	2,231	-	2,088	-
Total current liabilities	14,393,833	59	13,240,953	55
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 15 and 29)	538,230	2	636,090	3
Deferred tax liabilities (Notes 4 and 22)	-	-	23,896	-
Lease liabilities - non-current (Notes 4 and 12)	311	-	-	-
Other non-current liabilities (Note 17)	-	-	371	-
Total non-current liabilities	538,541	2	660,357	3
Total liabilities	14,932,374	61	13,901,310	58
EQUITY (Note 19)
Share capital
Ordinary shares	877,036	4	877,206	4
Capital surplus	1,377,293	6	1,580,612	7

Retained earnings
Legal reserve	2,761,914	11	2,341,482	10
Special reserve	-	-	349,767	1
Unappropriated earnings	4,651,316	19	4,796,274	20
Total retained earnings	7,413,230	30	7,487,523	31
Other equity (Notes 4, 19 and 24)	(114,544)	(1)	(16,189)	-
Total equity	9,553,015	39	9,929,152	42
TOTAL	\$ 24,485,389	100	\$ 23,830,462	100

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

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE
Sales (Notes 4, 20 and 28)	\$ 17,563,641	100	\$ 19,819,309	100
OPERATING COSTS
Cost of goods sold (Notes 9, 21 and 28)	(14,194,754)	(81)	(16,326,197)	(83)
GROSS PROFIT	3,368,887	19	3,493,112	17
OPERATING EXPENSES (Note 21)
Selling and marketing expenses	(213,028)	(1)	(284,116)	(1)
General and administrative expenses	(263,650)	(2)	(304,253)	(2)
Research and development expenses	(186,494)	(1)	(225,635)	(1)
Expected credit loss (Notes 4 and 8)	(11,691)	-	(8,518)	-
Total operating expenses	(674,863)	(4)	(822,522)	(4)
PROFIT FROM OPERATIONS	2,694,024	15	2,670,590	13
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 21)	160,739	1	197,978	1
Other income (Note 21)	510	-	308	-
Other gains and losses (Note 21)	(174,190)	(1)	(226,485)	(1)
Finance costs (Note 21)	(40,870)	-	(55,264)	-
Share of profit of subsidiaries, associates and joint ventures (Note 4)	1,439,558	8	2,160,220	11
Total non-operating income and expenses	1,385,747	8	2,076,757	11
PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS	4,079,771	23	4,747,347	24
INCOME TAX EXPENSE (Notes 4 and 22)	(558,896)	(3)	(543,025)	(3)
NET PROFIT FOR THE YEAR	3,520,875	20	4,204,322	21
				(Continued)

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE (LOSS) INCOME Items that may be reclassified subsequently to profit or loss Exchange differences on translation of the
financial statements of foreign operations (Notes 4 and 19) Income tax relating to items that may be reclassified subsequently to profit or loss	\$ (262,658)	(1)	\$ 556,686	3
(Notes 19 and 22)	52,532	-	(111,337)	(1)
Other comprehensive (loss) income for the year, net of income tax	(210,126)	(1)	445,349	2
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	\$ 3,310,749	19	\$ 4,649,671	23
EARNINGS PER SHARE (Note 23) Basic Diluted	\$ 40.23 \$ 40.05		\$ 48.13 \$ 47.88

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

Other Equity

Others		Treasury Shares		Total Equity
\$	(339, 420)	\$		\$ 8,357,803
				(3, 114, 435)
				(175, 461)
	227,649			211,574
				4,204,322
				445,349
				4,649,671
	(111, 771)			9,929,152
				(3, 596, 543)
			(2)
				(175, 441)
	111,771			85,098
			$\overline{c}$
				3,520,875
				(210, 126)
				3,310,749
\$		$\underline{\underline{\mathbb{S}}}$		\$9,553,015

							Other Equity
				Retained Earnings			Exchange Differences on Translation of the Financial Statements of
	Shares Capital	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Foreign Operations	Others	Treasury Shares	Total Equity
BALANCE AT JANUARY 1, 2024	\$ 877,306	\$ 1,772,473	\$ 1,979,226	\$ 200,346	\$ 4,217,639	\$ (349,767)	\$ (339,420)	\$ -	\$ 8,357,803
Appropriation of 2023 earnings (Note 19) Legal reserve Special reserve Cash dividends distributed by the Company	- - -	- - -	362,256 - -	- 149,421 -	(362,256) (149,421) (3,114,435)	- - -	- - -	- - -	- - (3,114,435)
Cash from capital surplus (Note 19)	-	(175,461)	-	-	-	-	-	-	(175,461)
Share-based payment transactions (Notes 19, 21 and 24)	(100)	(16,400)	-	-	425	-	227,649	-	211,574
Net profit for the year ended December 31, 2024	-	-	-	-	4,204,322	-	-	-	4,204,322
Other comprehensive income for the year ended December 31, 2024, net of income tax (Note 19)	-	-	-	-	-	445,349	-	-	445,349
Total comprehensive income for the year ended December 31, 2024	-	-	-	-	4,204,322	445,349	-	-	4,649,671
BALANCE AT DECEMBER 31, 2024	877,206	1,580,612	2,341,482	349,767	4,796,274	95,582	(111,771)	-	9,929,152
Appropriation of 2024 earnings (Note 19) Legal reserve Cash dividends distributed by the Company Reversal of special reserve	- - -	- - -	420,432 - -	- - (349,767)	(420,432) (3,596,543) 349,767	- - -	- - -	- - -	- (3,596,543) -
Donations from shareholders	-	2	-	-	-	-	-	(2)	-
Cash from capital surplus (Note 19)	-	(175,441)	-	-	-	-	-	-	(175,441)
Share-based payment transactions (Notes 19, 21 and 24)	(170)	(27,880)	-	-	1,377	-	111,771	-	85,098
Disposal of treasury shares	-	-	-	-	(2)	-	-	2	-
Net profit for the year ended December 31, 2025	-	-	-	-	3,520,875	-	-	-	3,520,875
Other comprehensive income for the year ended December 31, 2025, net of income tax (Note 19)	-	-	-	-	-	(210,126)	-	-	(210,126)
Total comprehensive income for the year ended December 31, 2025	-	-	-	-	3,520,875	(210,126)	-	-	3,310,749
BALANCE AT DECEMBER 31, 2025	\$ 877,036	\$ 1,377,293	\$ 2,761,914	\$ -	\$ 4,651,316	\$ (114,544)	\$ -	\$ -	\$ 9,553,015

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

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	\$ 4,079,771	\$ 4,747,347
Adjustments for:
Depreciation expense	50,082	49,102
Amortization expense	4,905	7,135
Expected credit loss recognized on trade receivables	11,691	8,518
Net gain on financial assets at fair value through profit or loss	(23,246)	(2,351)
Finance costs	40,870	55,264
Interest income	(160,739)	(197,978)
Compensation cost of employee share options	50,583	106,922
Share of profit of subsidiaries, associates and joint ventures	(1,439,558)	(2,160,220)
Write-downs of inventories	2,421	1,519
Net (loss) gain on foreign currency exchange	413,028	(40,975)
Changes in operating assets and liabilities
Notes receivable	81,627	(47,228)
Trade receivables	111,226	(338,078)
Trade receivables from related parties	29,166	(15,203)
Other receivables	(490)	688
Inventories	(19,122)	(59,474)
Other current assets	(1,616)	2,085
Contract liabilities	(148,934)	95,521
Notes payable	(6)	(38)
Trade payables	2,918	1,993
Trade payables to related parties	966,670	2,241,345
Other payables	37,822	108,062
Other current liabilities	143	58
Cash generated from operations	4,089,212	4,564,014
Interest received	170,261	189,650
Interest paid	(40,870)	(55,264)
Income tax paid	(577,430)	(361,160)
Net cash generated from operating activities	3,641,173	4,337,240
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through profit or loss	(16,705)	(16,704)
Net cash outflow from acquisition of subsidiaries	-	(16,135)
Acquisition of property, plant and equipment	(6,013)	(14,108)
Increase in refundable deposits	-	(200)
Decrease in refundable deposits	537	-
Payments for intangible assets	(1,243)	(2,470)
Increase in prepayments for equipment	(1,483)	(4,677)
Net cash used in investing activities	(24,907)	(54,294)
		(Continued)

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term borrowings Increase in guarantee deposits received Decrease in guarantee deposits received Repayment of the principal portion of lease liabilities Distributed cash dividends	\$ (97,860) - (371) (743) (3,771,984)	\$ (97,860) 371 - (782) (3,289,896)
Net cash used in financing activities	(3,870,958)	(3,388,167)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	(190,394)	244,597
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(445,086)	1,139,376
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	4,692,273	3,552,897
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	\$ 4,247,187	\$ 4,692,273

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Voltronic Power Technology Corp. (the "Company") was incorporated in the Republic of China (ROC) in May 2008. The Company mainly manufactures and sells uninterruptible power systems (UPS) and inverters.

The Company's shares have been listed on the Taiwan Stock Exchange since March 31, 2014.

The financial statements are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Company's board of directors on March 6, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Company's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" - the amendments to the application guidance of derecognition of	January 1, 2026
financial liabilities
Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 "Insurance Contracts" (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"

The amendments to the application guidance of derecognition of financial liabilities:

The amendments mainly stipulate that a financial liability is derecognized on the settlement date. However, when settling a financial liability in cash using an electronic payment system, the Company can choose to derecognize the financial liability before the settlement date if, and only if, the Company has initiated a payment instruction that resulted in:

• The Company having no practical ability to withdraw, stop or cancel the payment instruction;
• The Company having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and
• The settlement risk associated with the electronic payment system being insignificant.

An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

Except for the above impact, as of the date the financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a material impact on the Company's financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
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 IASB
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027 (Note 2)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 "Translation to a Hyperinflationary Presentation Currency"	January 1, 2027

• Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
• Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 "Presentation and Disclosure in Financial Statements" and consequential amendments

IFRS 18 will supersede IAS 1 "Presentation of Financial Statements". The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Company shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

• The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
• Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as "other" only if it cannot find a more informative label.
• Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

• The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
• Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

For the convenience of readers, the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the ROC. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language financial statements shall prevail.

a. Statement of compliance

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

b. Basis of preparation

The financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
• 3) Level 3 inputs are unobservable inputs for an asset or liability.

When preparing these parent company only financial statements, the Company used the equity method to account for its investment in subsidiaries, associates and joint ventures. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owner of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatment between the parent company basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries, associates and joint ventures, the share of other comprehensive income of subsidiaries, associates and joint ventures and the related equity items, as appropriate, in these parent company only financial statements.

c. Classification of current and non-current assets and liabilities

Current assets include:

• 1) Assets held primarily for the purpose of trading;
• 2) Assets expected to be realized within 12 months after the reporting period; and
• 3) Cash and cash equivalents, unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

• 1) Liabilities held primarily for the purpose of trading.
• 2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue; and
• 3) Liabilities for which the Company does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Foreign currencies

In preparing the Company's financial statements, transactions in currencies other than the Company's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

For the purpose of presenting the financial statements, the functional currencies of the Company and the group entities (including subsidiaries, associates, joint ventures and branches in other countries that use currencies different from the currency of the Company) are translated into the presentation currency the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

e. Inventories

Inventories consist of raw materials, work in progress, semi-finished goods, and finished goods are stated at the lower of cost and net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

f. Investments in subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity (including structured entity) that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company's share of equity of subsidiaries.

Changes in the Company's ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company's share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company's net investment in the subsidiary), the Company continues recognizing its share of further losses.

Any excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the entire financial statements of the invested company. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes the reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Profits or losses resulting from downstream transactions are eliminated in full only in the parent company's financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized only in the parent company's financial statements only to the extent of interests in the subsidiaries that are not related to the Company.

g. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

• h. Intangible assets
• 1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Impairment of property, plant and equipment, right-of-use asset, intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset, intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. Corporate assets are allocated to the individual CGUs on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or CGU in prior years. A reversal of an impairment loss is recognized in profit or loss.

j. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in debt instruments at FVTOCI.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 27: Financial Instruments.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

• i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
• ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable at amortized cost, trade receivables, trade receivables from related parties, other receivables, and refundable deposits are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

• i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
• ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred: Significant financial difficulty of the issuer or the borrower, breach of contract, it is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization or the disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in debt instruments at FVTOCI

Debt instruments that meet the following conditions are subsequently measured at FVTOCI:

• i) The debt instrument is held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of such financial assets; and
• ii) The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Investments in debt instruments at FVTOCI are subsequently measured at fair value. Changes in the carrying amounts of these debt instruments relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and impairment losses or reversals are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of.

b) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), along with the impairment losses recognized for these assets.

The Company always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Company determines that the following situations indicate that a financial asset is in default without taking into account any collateral held by the Company:

• i. Internal or external information shows that the debtor is unlikely to pay its creditors.
• ii. When a financial asset is more than 180 days past due unless the Company has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

c) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss.

2) Equity instruments

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

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company's own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company's own equity instruments.

3) Financial liabilities

a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

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

k. Revenue recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods

Revenue from the sale of goods comes from sales of uninterrupted power system electronic equipment. Sales of leisure goods and electronic equipment are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. Contract liabilities are the advance receipts which have not been recognized as revenue.

l. Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee's incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.

• m. Employee benefits
• 1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

n. Share-based payment arrangements

Restricted shares granted to employees

The fair value at the grant date of the restricted shares for employees is expensed on a straight-line basis over the vesting period on the basis of the Company's best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in other equity - earned employee benefits. It is recognized as an expense in full at the grant date if vested immediately.

When restricted shares for employees are issued, other equity - unearned employee benefits are recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees. Under certain conditions, some employees who receive restricted shares are required to return their shares to the issuer upon their resignation, all considerations received should be recognized as payables. Payables are continuously measured based on its estimated turnover rate for those granted before October 10, 2024 in accordance with the Q&A issued by the FSC and these shares will then be recognized as payables. If restricted shares for employees are granted for consideration and should be returned, they are recognized as payables. Dividends paid to employees on restricted shares that do not need to be returned if employees resign in the vesting period are recognized as expenses when the dividends are declared with a corresponding adjustment in retained earnings.

At the end of each reporting period, the Company revises its estimate of the number of restricted shares for employees expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the capital surplus - restricted shares for employees.

Equity-settled share-based payment arrangements granted to the employees of a subsidiary

The grant by the Company of its equity instruments to the employees of a subsidiary under equity-settled share-based payment arrangements is treated as a capital contribution. The fair value of employee services received under the arrangement is measured by reference to the grant-date fair value and is recognized over the vesting period as an addition to the investment in the subsidiary, with a corresponding credit to share-based payments.

o. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply to the period in which the liabilities are settled or the assets are realized, based on tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences of how the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred tax

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revisions affect only that period, or in the period of the revisions and future periods if the revisions affects both current and future periods.

Based on the assessment of the Company's management, the accounting policies, estimates, and assumptions adopted by the Company have not been subject to material accounting judgements, estimates and assumptions uncertainty.

6. CASH AND CASH EQUIVALENTS

	December 31
		2025		2024
Cash on hand	\$	354	\$	431
Demand deposits		269,692		229,082
Cash equivalents (investments with original maturities of 3 months or less)
Time deposits		3,977,141		4,462,760
	\$	4,247,187	\$	4,692,273

The market interest rates for cash in bank at the end of the reporting period were as follows:

	December 31
	2025	2024
Demand deposits	0.001%-0.705%	0.001%-4.260%
Time deposits	3.850%-4.240%	1.285%-4.890%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets at fair value through profit or loss (FVTPL) - non-current
Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Fund beneficiary certificate	\$ 101,368	\$ 61,417

8. NOTES RECEIVABLE, TRADE RECEIVABLES (INCLUDING RELATED PARTIES) AND OTHER RECEIVABLES

	December 31
	2025	2024
Notes receivable
At amortized cost Gross carrying amount Less: Allowance for impairment loss	\$ 23,118 - \$ 23,118	\$ 104,745 - \$ 104,745
Trade receivables
At amortized cost Gross carrying amount Less: Allowance for impairment loss At FVTOCI	\$ 2,581,197 (39,964) 2,541,233 81,408	\$ 2,679,612 (28,273) 2,651,339 84,489
	\$ 2,622,641	\$ 2,735,828
Trade receivables from related parties
At amortized cost Gross carrying amount Less: Allowance for impairment loss At FVTOCI	\$ 58,759 - 58,759 86,297 \$ 145,056	\$ 124,313 - 124,313 49,229 \$ 173,542
Other receivables
Interest receivables Tax refund receivables	\$ 11,900 7,670	\$ 21,422 7,180
	\$ 19,570	\$ 28,602

a. Notes receivable

At amortized cost

The average credit period of notes receivable is 60 to 120 days.

The Company measures the loss allowance for notes receivables at an amount equal to lifetime ECLs. The expected credit losses on notes receivable are estimated by reference to past default experience of the debtor and adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As of December 31, 2025 and 2024, the Company evaluated no allowance for impairment loss was needed for notes receivable.

As of December 31, 2025 and 2024, the Company did not pledge any collateral as security for such notes receivables.

The following table details the aging analysis of notes receivable:

	December 31
	2025	2024
1 to 60 days 61 to 90 days 91 to 120 days over 121 days	\$ 12,080 9,756 1,282 -	\$ 84,967 19,738 40 -
	\$ 23,118	\$ 104,745

The above aging analysis of notes receivable is based on the journal date.

b. Trade receivables

1) At amortized cost

The average credit period of sales of goods was 0 to 180 days.

In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Company's credit risk was significantly reduced.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the customer, the customer's current financial position, economic conditions of the industry in which the customer operates, as well as the GDP forecast and industry outlook. The provision for expected credit losses is based on the number of past due days from the end of the credit term.

The Company writes off a trade receivable when there is information indicating that the customer is experiencing severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

Since the Company purchased insurance individually and the credit rating is evaluated by the insurance company, no impairment loss was needed for trade receivables. As of December 31, 2025 and 2024, the carrying amount of trade receivables covered by insurance was \$1,715,413 thousand and \$1,997,198 thousand, respectively.

The following table details the loss allowance of trade receivables (including related parties) based on the Company's provision matrix.

December 31, 2025

				Past Due
	Not Past Due	Up to 90 Days	91 to 180 Days	181 to 270 Days	271 to 365 Days	Over 365 Days	Total
Expected credit loss rate	0.33%	3.77%	55.55%	100%	100%	100%
Gross carrying amount Loss allowance (Lifetime ECLs)	\$ 817,109 (2,714)	\$ 44,353 (1,671)	\$ 61,871 (34,369)	\$ 159 (159)	\$ 602 (602)	\$ 449 (449)	\$ 924,543 (39,964)
Amortized cost	\$ 814,395	\$ 42,682	\$ 27,502	\$ -	\$ -	\$ -	\$ 884,579

December 31, 2024

				Past Due
	Not Past Due	Up to 90 Days	91 to 180 Days	181 to 270 Days	271 to 365 Days	Over 365 Days	Total
Expected credit loss rate	0.42%	4.16%	46.21%	100%	100%	100%
Gross carrying amount	\$ 701,175	\$ 70,727	\$ 23,103	\$ 1,156	\$ 31	\$ 10,535	\$ 806,727
Loss allowance (Lifetime ECLs)	(2,932)	(2,942)	(10,677)	(1,156)	(31)	(10,535)	(28,273)
Amortized cost	\$ 698,243	\$ 67,785	\$ 12,426	\$ -	\$ -	\$ -	\$ 778,454

The movements of the loss allowance of trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance at January 1 Add: Net remeasurement of loss allowance	\$ 28,273 11,691	\$ 19,755 8,518
Balance at December 31	\$ 39,964	\$ 28,273

2) At FVTOCI

For trade receivables from a specific customer, the Company will decide whether to sell these trade receivables to banks without recourse based on its level of working capital. These trade receivables are classified as at FVTOCI because they are held within a business model whose objective is achieved by both the collecting of contractual cash flows and selling of financial assets.

Since the Company purchased insurance individually and the credit rating is evaluated by the insurance company, no impairment loss was needed for trade receivables at FVTOCI. As of December 31, 2025 and 2024, the carrying amount of trade receivables at FVTOCI was \$19,072 thousand and \$182 thousand, respectively.

The following table details the loss allowance of trade receivables (including related parties) at FVTOCI based on the Company's provision matrix.

December 31, 2025

					Past Due
	Not Past Due	Up to 90 Days	91 to 180 Days		181 to 270 Days		271 to 365 Days		Over 365 Days		Total
Expected credit loss rate	-	-	-		100%		100%		100%
Gross carrying amount Loss allowance (Lifetime ECLs)	\$ 148,633 -	\$ - -	\$	- -	\$	- -	\$	- -	\$	- -	\$ 148,633 -
Amortized cost	\$ 148,633	\$ -	\$	-	\$	-	\$	-	\$	-	\$ 148,633

December 31, 2024

						Past Due
	Not Past Due	Up to 90 Days		91 to 180 Days		181 to 270 Days		271 to 365 Days		Over 365 Days		Total
Expected credit loss rate	-	-		-		100%		100%		100%
Gross carrying amount Loss allowance (Lifetime ECLs)	\$ 133,536 -	\$	- -	\$	- -	\$	- -	\$	- -	\$	- -	\$ 133,536	-
Amortized cost	\$ 133,536	\$	-	\$	-	\$	-	\$	-	\$	-	\$ 133,536

c. Other receivables

The Company's other receivables included interest receivables and refundable tax. The Company follows the policy of trading only with customers who maintains good credit standing. The Company estimates whether the credit risk is significantly increased by monitoring the business situation and measures the loss allowance for other receivables by reference to past default experience of the debtor and analyze of the debtor's current financial position. As of December 31, 2025 and 2024, the Company evaluated no allowance for impairment loss was needed for other receivables.

9. INVENTORIES

	December 31
	2025	2024
Raw materials Work in progress Semi-finished goods Finished goods	\$ 92,109 24,260 1,042 35,317	\$ 64,790 43,124 1,185 26,928
	\$ 152,728	\$ 136,027

The nature of the cost of goods sold is as follows:

	For the Year Ended December 31
	2025	2024
Cost of inventories sold Inventory write-downs	\$ 14,192,333 2,421	\$ 16,324,678 1,519
	\$ 14,194,754	\$ 16,326,197

10. INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in subsidiaries
Voltronic International Corp.	\$ 13,739,243	\$ 12,719,971
Voltronic Power Technology (Vietnam) Company Limited	816,962	625,479
Inversolenergy Tech, Inc.	17,429	16,769
	\$ 14,573,634	\$ 13,362,219

At the end of the reporting period, the percentage of ownership of and voting rights in the subsidiary held by the Company were as follows:

	December 31
	2025	2024
Voltronic International Corp.	100%	100%
Voltronic Power Technology (Vietnam) Company Limited	100%	100%
Inversolenergy Tech, Inc.	100%	100%

In response to operational needs, the company, on May 9, 2024, resolved through the board of directors to invest in the establishment of a subsidiary, Inversolenergy Tech, Inc. in the United States, with an invested capital of US\$500 thousand and a 100% ownership stake.

For information on investments in subsidiaries which were held indirectly by Company, refer to Tables 5 and 6.

The investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2025 and 2024 were based on the subsidiary's financial statements audited by the auditors for the same years.

11. PROPERTY, PLANT AND EQUIPMENT

Assets Used by the Company

	Freehold Land	Buildings	Machinery and Equipment	Transportation Equipment	Office Equipment	Other Equipment	Property under Construction	Total
Cost
Balance at January 1, 2025 Additions Disposals Reclassified (Note 1)	\$ 1,307,921 - - -	\$ 1,231,780 - - -	\$ 155,109 3,733 - 1,338	\$ 1,535 - - -	\$ 10,769 - (260 ) -	\$ 38,962 2,280 (612 ) -	\$ - - - -	\$ 2,746,076 6,013 (872 - ) 1,338
Balance at December 31, 2025	\$ 1,307,921	\$ 1,231,780	\$ 160,180	\$ 1,535	\$ 10,509	\$ 40,630	\$ -	\$ 2,752,555
Accumulated depreciation and impairment
Balance at January 1, 2025 Depreciation expense Disposals	\$ - - -	\$ 131,722 33,319 -	\$ 97,234 12,020 -	\$ 638 231 -	\$ 9,226 523 (260 )	\$ 27,393 3,283 (612 )	\$ - - -	\$ 266,213 49,376 (872 )
Balance at December 31, 2025	\$ -	\$ 165,041	\$ 109,254	\$ 869	\$ 9,489	\$ 30,064	\$ -	\$ 314,717
Carrying amounts at December 31, 2025	\$ 1,307,921	\$ 1,066,739	\$ 50,926	\$ 666	\$ 1,020	\$ 10,566	\$ -	\$ 2,437,838 (Continued)

	Freehold Land	Buildings	Machinery and Equipment	Transportation Equipment	Office Equipment	Other Equipment	Property under Construction	Total
Cost
Balance at January 1, 2024 Additions Disposals Reclassified (Note 1)	\$ 1,307,921 - - -	\$ 1,178,001 2,666 - 51,113	\$ 144,964 5,965 (165 ) 4,345	\$ 605 637 - 293	\$ 10,839 - (167 ) 97	\$ 33,474 4,840 - 648	\$ 51,113 - - (51,113)	\$ 2,726,917 14,108 (332 - ) 5,383
Balance at December 31, 2024	\$ 1,307,921	\$ 1,231,780	\$ 155,109	\$ 1,535	\$ 10,769	\$ 38,962	\$ -	\$ 2,746,076
Accumulated depreciation and impairment
Balance at January 1, 2024 Depreciation expense Disposals	\$ - - -	\$ 99,525 32,197 -	\$ 85,722 11,677 (165 )	\$ 439 199 -	\$ 8,841 552 (167 )	\$ 23,692 3,701 -	\$ - - -	\$ 218,219 48,326 (332 )
Balance at December 31, 2024	\$ -	\$ 131,722	\$ 97,234	\$ 638	\$ 9,226	\$ 27,393	\$ -	\$ 266,213
Carrying amounts at December 31, 2024	\$ 1,307,921	\$ 1,100,058	\$ 57,875	\$ 897	\$ 1,543	\$ 11,569	\$ -	\$ 2,479,863 (Concluded)

Note 1: Reclassified from prepayments for equipment to property, plant and equipment \$1,338 thousand.

Note 2: Reclassified from prepayments for equipment to property plant and equipment \$5,383 thousand.

For the years ended December 31, 2025 and 2024, no impairment assessment was performed as there was no indication of impairment.

The above items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives as follows:

Buildings
Main buildings	50 years
Draining and air-conditioning units	5-10 years
Machinery and equipment	2-10 years
Transportation equipment	3-5 years
Office equipment	2-5 years
Other equipment	3-5 years

Refer to Note 29 for the carrying amount of property, plant and equipment pledged by the Company to secure borrowings.

12. LEASE ARRANGEMENTS

a. Right-of-use assets

		December 31
	2025	2024
Carrying amount
Transportation equipment	\$ 662	\$ 646

		For the Year Ended December 31
		2025	2024
	Additions to right-of-use assets	\$ 722	\$ -
	Depreciation charge for right-of-use assets Transportation equipment	\$ 706	\$ 776
b.	Lease liabilities
			December 31
		2025	2024
	Carrying amount

Current	\$ 354	\$ 686
Non-current	\$ 311	\$ -

Range of discount rate for lease liabilities was as follows:

	December 31
	2025	2024
Transportation equipment	5.58%	5.58%

c. Material leasing activities and terms

The Company leases vehicles for use in operations with lease terms of 2 years. The Company does not have bargain purchase options to acquire the leased vehicles at the end of the lease terms.

d. Other lease information

		For the Year Ended December 31
	2025	2024
Expenses relating to low-value asset leases	\$ 136	\$ 119
Total cash outflow for leases	\$ (900)	\$ (959)

The Company leases certain office equipment qualify as low-value asset leases. The Company has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

13. OTHER INTANGIBLE ASSETS

	Computer Software
Cost
Balance at January 1, 2025 Additions	\$ 32,305 1,243
Balance at December 31, 2025	\$ 33,548
Accumulated amortization
Balance at January 1, 2025 Amortization expense	\$ 24,044 4,905
Balance at December 31, 2025	\$ 28,949
Carrying amount at December 31, 2025	\$ 4,599
Cost
Balance at January 1, 2024 Additions Disposals	\$ 33,034 2,470 (3,199)
Balance at December 31, 2024	\$ 32,305
Accumulated amortization
Balance at January 1, 2024 Amortization expense Disposals	\$ 20,108 7,135 (3,199)
Balance at December 31, 2024	\$ 24,044
Carrying amount at December 31, 2024	\$ 8,261

The computer software are amortized on a straight-line basis over their estimated useful lives of 3 to 5 years.

Amortization expenses by function are as follows:

	For the Year Ended December 31
	2025	2024
Operating costs	\$ -	\$ 46
Selling and marketing expenses	509	784
General and administrative expenses	3,513	4,759
Research and development expenses	883	1,546
	\$ 4,905	\$ 7,135

14. OTHER ASSETS

	December 31
	2025	2024
Current
Other prepayments	\$ 11,831	\$ 10,215
Non-current
Refundable deposits Prepayments for equipment	\$ 583 590	\$ 1,120 445
	\$ 1,173	\$ 1,565

15. BORROWINGS

	December 31
	2025	2024
Secured borrowings (Note 29)
Bank loans Less: Current portion	\$ 636,090 (97,860)	\$ 733,950 (97,860)
	\$ 538,230	\$ 636,090

The weighted average effective interest rate on bank loans listed above was 1.9976% and 1.9960% as at December 31, 2025 and 2024.

In March 2022, the Company secured a loan of \$978,600 thousand with its own land and buildings as collateral. The principal is amortized equally over 10 years, and the maturity date of the loan will be in March 2032.

16. NOTES PAYABLE AND TRADE PAYABLES

	December 31
	2025	2024
Notes payable
Operating	\$ -	\$ 6
Trade payables
Operating	\$ 20,631	\$ 17,713

The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

17. OTHER LIABILITIES

	December 31
	2025	2024
Current
Other payables
Payables for compensation of employees	\$ 414,491	\$ 357,734
Payables for commission	65,343	66,908
Payables for salaries and bonuses	56,160	74,895
Payables for remuneration of directors and supervisors	14,400	14,400
Payables for insurance	8,339	7,792
Others	15,546	13,655
	\$ 574,279	\$ 535,384
Other liabilities
Receipts under custody	\$ 2,231	\$ 2,088
Non-current
Other liabilities
Deposits received	\$ -	\$ 371

18. RETIREMENT BENEFIT PLANS

Defined Contribution Plans

The Company adopted a pension plan under the Labor Pension Act (LPA), a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

19. EQUITY

a. Share capital

Ordinary shares

	December 31
	2025	2024
Shares authorized (in thousands of shares)	100,000	100,000
Shares authorized	\$ 1,000,000	\$ 1,000,000
Shares issued and fully paid (in thousands of shares)	87,703	87,720
Shares issued and fully paid	\$ 877,036	\$ 877,206

Fully paid ordinary shares, which have a par value of \$10, carry one vote per share and carry a right to dividends.

Shares authorized include \$20,000 thousand for the issuance of employee share options.

On March 6, June 6 and November 6, 2025, the board of directors resolved to withdraw restricted shares. The Company withdraw \$50 thousand and 5 thousand shares, \$42 thousand and 4.2 thousand shares and \$78 thousand and 7.8 thousand shares, respectively, with a par value of \$10, on March 10, June 6 and November 30, 2025 as the effective date of reduction, and where the approval of the Ministry of Economic Affairs (MOEA) was obtained on April 7, July 16 and December 24, 2025, respectively.

On May 9 and August 8, 2024, the board of directors resolved to withdraw restricted shares. The Company withdraw \$44 thousand and 4.4 thousand shares, and \$56 thousand and 5.6 thousand shares, respectively, with a par value of \$10, on June 20 and August 30, 2024 as the effective date of reduction, and where the approval of the Ministry of Economic Affairs (MOEA) was obtained on July 17 and October 8, 2024, respectively.

A reconciliation of the number of shares outstanding was as follows:

	Number of Shares (In Thousands of Shares)	Share Capital
Balance at January 1, 2025 Retirement of recognized employee restricted shares (Note 24)	\$ 87,720 (17)	\$ 877,206 (170)
Balance at December 31, 2025	\$ 87,703	\$ 877,036
Balance at January 1, 2024 Retirement of recognized employee restricted shares (Note 24)	\$ 87,730 (10)	\$ 877,306 (100)
Balance at December 31, 2024	\$ 87,720	\$ 877,206

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note)
Premium from the issuance ordinary shares Premium from employee restricted shares	\$ - 1,377,291	\$ 77,827 1,015,869
May not be used for any purpose
Employee restricted shares Donation shares	- 2	486,916 -
	\$ 1,377,293	\$ 1,580,612

Note: Capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends, or transferred to share capital limited to a certain percentage of the Company's capital surplus and only once a year.

A reconciliation of the capital surplus for 2025 and 2024 was as follows:

	Premium from Ordinary Shares	Premium from Employee Restricted Shares	Employee Restricted Shares	Donations from Shareholder
Balance at January 1, 2025 Vested employee restricted shares	\$ 77,827 -	\$ 1,015,869 459,036	\$ 486,916 (459,036)	\$ - -
Retired employee restricted shares (Note 1)	-	-	(27,880)	-
Shareholders waives ownership of shares	-	-	-	2
Cash distribution	(77,827)	(97,614)	-	-
Balance at December 31, 2025	\$ -	\$ 1,377,291	\$ -	\$ 2
Balance at January 1, 2024 Vested employee restricted shares Retired employee restricted shares	\$ 253,288 -	\$ 854,001 161,868	\$ 665,184 (161,868)	\$ - -
(Note 2)	-	-	(16,400)	-
Cash distribution	(175,461)	-	-	-
Balance at December 31, 2024	\$ 77,827	\$ 1,015,869	\$ 486,916	\$ -

• Note 1: Reversal of compensation cost of the restricted shares amounting to \$28,050 thousand, net of retired share capital of \$170 thousand.
• Note 2: Reversal of compensation cost of the restricted shares amounting to \$16,500 thousand, net of retired share capital of \$100 thousand.
• c. Retained earnings and dividend policy

Under the dividend policy as set forth in the Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for offsetting losses of previous years, (including adjusting the undistributed retained earnings), setting aside as a legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company's board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees' compensation and remuneration of directors, refer to employees' compensation and remuneration of directors and supervisors in Note 21-g.

Distribution of the compensation may be made by way of cash dividends or share dividends, where the ratio of the cash dividends distributed shall not be less than 10% of the total bonuses distributed. However, in case where that the bonus per share is less than NT\$0.3, the board of directors may cancel the bonus distribution by submitting such cancellation for resolution at the shareholders' meeting.

The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1090150022 should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2024 and 2023 were resolved in the shareholders' meetings on May 28, 2025 and June 14, 2024, respectively, were as follows:

	For the Year Ended December 31
	2024	2023
Legal reserve	\$ 420,432	\$ 362,256
Recognition of special (reversed) reserve	\$ (349,767)	\$ 149,421
Cash dividends	\$ 3,596,543	\$ 3,114,435
Cash dividends per share (NT\$)	\$ 41	\$ 35.5

An issuance of cash dividends from capital surplus amounting to \$175,441 thousand and \$175,461 thousand was approved at the shareholders' meetings on May 28, 2025 and June 14, respectively.

The appropriation of earnings for 2025, which had been resolved by the Company's board of directors on March 6, 2026, was as follows:

	For the Year Ended December 31, 2025
Legal reserve	\$ 352,088
Recognition of special reserve	\$ 114,544
Cash dividends	\$ 3,069,625
Cash dividends per share (NT\$)	\$ 35

The appropriation of earnings for 2025 is to be resolved by the shareholders in the shareholders' meeting on May 28, 2026.

In addition, the board of directors proposed the distribution of cash from the capital surplus of \$175,407 thousand on March 6, 2026, which is to be resolved by the shareholders in their meeting on May 28, 2026.

The appropriation of earnings of the Company are based on each individual company's policy and is not limited by any contracts.

d. Special reserve

	For the Year Ended December 31
	2025	2024
Balance at January 1 Recognition of the debits to other equity items (reversed)	\$ 349,767 (349,767)	\$ 200,346 149,421
Balance at December 31	\$ -	\$ 349,767

e. Other equity items

Exchange differences on translating the financial statements of foreign operations

	For the Year Ended December 31
	2025	2024
Balance at January 1	\$ 95,582	\$ (349,767)
Recognized for the year
Exchange differences on translating foreign operations	(262,658)	556,686
Income tax related to exchange differences arising on
translating to the presentation currency	52,532	(111,337)
Other comprehensive income from the year	(210,126)	445,349
Balance at December 31	\$ (114,544)	\$ 95,582

Unearned employee benefits

In the meetings of shareholders on June 17, 2022, the shareholders approved a restricted shares plan for employees (refer to Note 24).

	For the Year Ended December 31
	2025	2024
Balance at January 1	\$ (111,771)	\$ (339,420)
Share-based payment expenses recognized	49,206	106,497
Unearned stock-based on compensation of subsidiaries
recognized	34,515	104,652
Adjustment for retired restricted employee shares (Note)	28,050	16,500
Balance at December 31	\$ -	\$ (111,771)

Note: Deducted from compensation cost of restricted shares.

20. REVENUE

		For the Year Ended December 31
		2025	2024
Revenue from contracts with customers Revenue from the sale of goods		\$ 17,563,641	\$ 19,819,309
	December 31, 2025	December 31, 2024	January 1, 2024
Contract balances Notes receivable (Note 8) Trade receivables (Notes 8 and 28)	\$ 23,118 \$ 2,767,697	\$ 104,745 \$ 2,909,370	\$ 57,517 \$ 2,428,498
Contract liabilities - current Sale of goods	\$ 232,376	\$ 381,310	\$ 285,789

Revenue recognized in the current reporting period from contract liabilities at the beginning of the year is as follows:

			For the Year Ended December 2025	31 2024
		From contract liabilities at the beginning of the year Sale of goods	\$ 381,310	\$ 285,789
21.		NET PROFIT (LOSS) FROM CONTINUING OPERATIONS
	a.	Interest income
			For the Year Ended December 31 2025	2024
		Bank deposits	\$ 160,739	\$ 197,978
	b.	Other income
				For the Year Ended December 31
			2025	2024
		Others	\$ 510	\$ 308
	c.	Other gains and (losses)
			For the Year Ended December 31
			2025	2024
		Fair value changes of financial assets and financial liabilities Financial assets mandatorily classified as at FVTPL	\$ 23,246	\$ 2,351
		Net foreign exchange losses	(197,436) \$ (174,190)	(228,836) \$ (226,485)

		For the Year Ended December 31
	2025	2024
Interest on bank loans	\$ 13,678	\$ 15,090
Interest on lease liabilities	21	58
Other interest expense	27,171	40,116
	\$ 40,870	\$ 55,264

e. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Operating costs	\$ 20,672	\$ 19,959
Operating expenses	29,410	29,143
	\$ 50,082	\$ 49,102
An analysis of amortization by function
Operating costs	\$ -	\$ 46
Operating expenses	4,905	7,089
	\$ 4,905	\$ 7,135

Refer to Note 13 for information relating to the line items in which any amortization of intangible assets in included.

f. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Salary expenses	\$ 414,266	\$ 453,411
Other employee benefits
Labor and health insurance	20,623	18,725
Other employee benefits	16,468	17,211
Equity-settled share-based payments (Note 24)	50,583	106,922
	(Note 1)	(Note 2)
Post-employment benefits
Defined contribution plans	8,653	7,939
Total employee benefits expense	\$ 510,593	\$ 604,208
An analysis of employee benefits expense by function
Operating costs	\$ 77,132	\$ 63,034
Operating expenses	433,461	541,174
	\$ 510,593	\$ 604,208

Note 1: Share-based payment expense recognized of \$49,206 thousand and accumulated dividends that no need to be returned payout from returned and retired restricted shares of \$1,377 thousand at December 31, 2025.

Note 2: Share-based payment expense recognized of \$106,497 thousand and accumulated dividends that no need to be returned payout from returned and retired restricted shares of \$425 thousand at December 31, 2024.

g. Compensation of employees and remuneration of directors

According to the Articles of Incorporation of the Company, the Company accrued employees' compensation and remuneration of directors at the rates between 3.75% and 11.5% and no higher than 3.75%, respectively, of net profit before income tax, employees' compensation and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation no less than 5% of compensation of employees as compensation distributions for non-executive employee. The employees' compensation and remuneration of directors for the years ended December 31, 2025 and 2024, which have been approved by the Company's board of directors on March 6, 2026 and March 6, 2025, respectively, were as follows:

Accrual rate

	For the Year Ended December 31
	2025	2024
Employee's compensation Remuneration of directors	3.99% 0.34%	4.22% 0.29%

Amount

		For the Year Ended December 31
	2025	2024
	Cash	Cash
Employee's compensation	\$ 170,000	\$ 210,000
Remuneration of directors	14,400	14,400

If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of employee's compensation and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2024 and 2023.

Information on the employee's compensation and remuneration of directors resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

h. Gain or loss on foreign currency exchange

	For the Year Ended December 31
	2025	2024
Foreign exchange gains Foreign exchange losses	\$ 904,439 (1,101,875)	\$ 419,707 (648,543)
Net losses	\$ (197,436)	\$ (228,836)

22. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	\$ (610,372)	\$ (536,159)
Income tax on unappropriated earnings	(26,877)	-
Adjustments for prior year	(1,736)	(17,917)
	(638,985)	(554,076)
Deferred tax
In respect of the current year	80,089	11,051
Income tax expense recognized in profit or loss	\$ (558,896)	\$ (543,025)

A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax from continuing operations	\$ 4,079,771	\$ 4,747,347
Income tax expense calculated at the statutory rate (20%)	\$ (815,954)	\$ (949,469)
Nondeductible expenses and income in determining taxable income	4,649	470
Income tax expense calculated in accordance with Article 43-3 of
the Income Tax Law	(6,890)	(9,196)
Deferred tax effect of earnings of subsidiaries	287,912	432,044
Income tax on unappropriated earnings	(26,877)	-
Unrecognized deductible temporary differences	-	1,043
Adjustments for prior years' tax	(1,736)	(17,917)
Income tax expense recognized in profit or loss	\$ (558,896)	\$ (543,025)

As the status of the 2026 appropriations of earnings is uncertain, the potential income tax consequences of additional 5% on 2025 unappropriated earnings are not reliably determinable.

b. Income tax recognized in other comprehensive (expense) income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year Translation of foreign operations	\$ 52,532	\$ (111,337)

c. Current tax liabilities

	December 31
	2025	2024
Current tax liabilities Income tax payable	\$ 351,242	\$ 289,687

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Compre hensive Income	Closing Balance
Deferred tax assets
Temporary differences
Exchanges difference on
foreign operations	\$ -	\$ -	\$ 28,636	\$ 28,636
Unrealized loss on
write-down of inventories	752	484	-	1,236
Unrealized employee compensation	29,547	19,351	-	48,898
The loss allowance of
accounts receivables	1,673	2,842	-	4,515
Unrealized exchange losses	3,287	57,412	-	60,699
	\$ 35,259	\$ 80,089	\$ 28,636	\$ 143,984
Deferred tax liabilities
Temporary differences
Exchanges difference on
foreign operations	\$ 23,896	\$ -	\$ (23,896)	\$ -

For the year ended December 31, 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Compre hensive Income	Closing Balance
Deferred tax assets
Temporary differences Exchanges difference on foreign operations Unrealized loss on write-down of inventories Unrealized employee compensation The loss allowance of accounts receivables Unrealized exchange losses	\$ 87,441 448 27,090 - - \$ 114,979	\$ - 304 2,457 1,673 3,287 \$ 7,721	\$ (87,441) - - - - \$ (87,441)	\$ - 752 29,547 1,673 3,287 \$ 35,259
Deferred tax liabilities
Temporary differences Exchanges difference on foreign operations Unrealized exchange gains	\$ - 3,330 \$ 3,330	\$ - (3,330) \$ (3,330)	\$ 23,896 - \$ 23,896	\$ 23,896 - \$ 23,896

e. The aggregate amount of temporary difference associated with investments for which deferred tax liabilities have not been recognized

As of December 31, 2025 and 2024, the taxable temporary differences associated with investments in subsidiaries for which no deferred tax liabilities were recognized amounted to \$13,292,460 thousand and \$11,852,902 thousand, respectively.

f. Income tax assessments

The Company's income tax returns through 2023 have been assessed by the tax authorities. As of December 31, 2025, the Company has no unsettled lawsuits related to tax.

23. EARNINGS PER SHARE

Unit: NT\$ Per Share

	For the Year Ended December 31
	2025	2024
Basic earnings per share	\$	\$
Basic earnings per share	40.23	48.13
Diluted earnings per share	\$	\$
Diluted earnings per share	40.05	47.88

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

	For the Year Ended December 31
	2025	2024
Net profit for the year	\$ 3,520,875	\$ 4,204,322
Weighted average number of ordinary shares used in the computation of basic earnings per share (in thousands)	87,512	87,356
Effect of potentially dilutive ordinary shares Employees' compensation or bonuses issued to employees	196	131
Employee restricted shares	200	331
Weighted average number of ordinary shares used in the computation of diluted earnings per share (in thousands)	87,908	87,818

The Company may settle the compensation or bonuses paid to employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

24. SHARE-BASED PAYMENT ARRANGEMENTS - RESTRICTED SHARE PLAN FOR EMPLOYEES

a. 2022

On June 17, 2022, the shareholders resolved a restricted share plan for employees with a total amount of \$5,400 thousand, consisting of 540 thousand shares, for free issuance. The base date of the capital increase and payment was September 8, 2022, which was the date determined by the board of directors on August 25, 2022. The restrictions on the rights of the employees who acquire the restricted shares but have not met the vesting conditions are as follows:

1) The employees should provide the restricted shares to the Company or the agency designated by the Company acting as the trust custodian and cooperate in complying with all related procedures and preparing the required documents.

• 2) The employees shall not sell, pledge, transfer, donate or, in any other way, dispose of these shares.
• 3) Employees holding equity under the custody of the trust agency do not have the right to attend shareholders' meetings or to engage in motions, speech, and voting therein.
• 4) The employees' other rights, which are the same as those of ordinary shareholders of the Company, include but are not limited to the rights to receive dividends, bonuses and capital surplus in shares and cash increases by share.

The vesting conditions of restricted shares are when an employee received the restricted shares, and the restriction of acquiring the shares would be canceled as follows:

After one year from the grant date with achieved operational goals by individuals and companies: 20%.

After two years from the grant date with achieved operational goals by individuals and companies: 20%.

After three years from the grant date with achieved operational goals by individuals and companies: 60%.

The individual performance target is set by the Chairman for different employees of each department. The Company's operating objectives are based on four indicators: Consolidated revenue, combined gross profit margin, combined operating profit and combined operating profit ratio. Each objective contains A and B target conditions, respectively, and achieving one of the target conditions is considered as achieving the objective. After each target condition is reached, 25% of the number of shares allocated in the current year can be obtained. The judgment of the achievement of the indicators and standards shall be based on the consolidated financial statements of the first year prior to the expiration of the Company's vested conditions. The target conditions are detailed in the table below.

Operating Objective	Target Condition A	Target Condition B	Ratio of The Number of Shares to Be Awarded in the Current Year
Revenue	10% (inclusive) or more	Higher than the Company's	25%
	than the previous year	average for the first three years
Gross profit (GM%)	Increase by 1% or more	Higher than the Company's	25%
	from the previous year	average for the first three years
Operating profit	10% (inclusive) or more	Higher than the Company's	25%
(OPM\$)	than the previous year	average for the first three years
Operating profit ratio	Increase by 1% or more	Higher than the Company's	25%
(OPM%)	from the previous year	average for the first three years

If an employee fails to meet the vesting conditions, the Company will withdraw the restricted shares.

The aforementioned newly issued restricted employee shares were assessed to have a fair value of \$1,650 per share, based on the market approach. The unearned employee benefits of \$891,000 thousand were recognized on the basis of vesting conditions and expensed on a straight-line basis over the vesting period. Compensation costs of \$50,583 thousand and \$106,922 thousand were recognized, respectively, within the vesting period for the years ended December 31, 2025 and 2024. Compensation costs of \$34,515 thousand and \$104,652 thousand were recognized, respectively, by the subsidiary because of the restricted stock from employees within the vesting period for the years ended December 31, 2025 and 2024.

b. 2025

On May 28, 2025, the shareholder's meeting resolved restricted share plan for employees with 550 thousand shares, which have a par value of \$10, for free issuance. It is estimated that the total amount of recognized compensation costs during the vesting period is \$924,000 thousand. The actual issue date will be determined by the chairman authorized by the board of directors after reporting to the competent authority.

c. Information on the restricted share plan for employees was as follows:

	Number of Options (In Thousands of Units) For the Year Ended December 31
	2025	2024
Balance on January 1	297	406
Vested	(280)	(99)
Forfeited (Note)	(17)	(10)
Balance on December 31	-	297

Note: The forfeited shares for the years ended December 31, 2025 and 2024 were the shares that were cancelled due to the vesting conditions not being met.

25. CASH FLOWS INFORMATION

Changes in Liabilities Arising from Financing Activities

For the year ended December 31, 2025

			Non-cash Changes
	Opening Balance	Cash Flows	New Leases		Decrease			Exchange Rate Impact	Closing Balance
Long-term borrowings (including current portion of long-term
borrowings)	\$ 733,950	\$ (97,860)	\$	-	\$	-	\$	-	\$ 636,090
Deposits Received	371	(371)		-		-		-	-
Guarantee deposits	686	(743)		722		-		-	665
	\$ 735,007	\$ (98,974)	\$	722	\$	-	\$	-	\$ 636,755

For the year ended December 31, 2024

			Non-cash Changes
	Opening Balance	Cash Flows	New Leases		Decrease			Exchange Rate Impact	Closing Balance
Long-term borrowings (including current portion of long-term
borrowings)	\$ 831,810	\$ (97,860)	\$	-	\$	-	\$	-	\$ 733,950
Deposits Received	-	371		-		-		-	371
Guarantee deposits	1,468	(782)		-		-		-	686
	\$ 833,278	\$ (98,271)	\$	-	\$	-	\$	-	\$ 735,007

26. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while considering operating risks and maximizing the returns to shareholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of equity of the Company (comprising issued capital, reserve, retained earnings and other equity).

The Company is not subject to any externally imposed capital requirements.

Under the recommendations of the key management, to balance the overall capital structure, the Company may adjust the number of new shares issued.

27. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

Management believes the carrying amounts of financial assets and financial liabilities recognized in the financial statements which are not measured at fair value approximate their fair values.

• b. Fair value of financial instruments measured at fair value on a recurring basis
• 1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	\$ -	\$ -	\$ 101,368	\$ 101,368
Financial assets at FVTOCI
Investments in debt instruments Factored trade receivables to bank without recourses	\$ -	\$ -	\$ 167,705	\$ 167,705
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	\$ -	\$ -	\$ 61,417	\$ 61,417
Financial assets at FVTOCI
Investments in debt instruments Factored trade receivables to bank without recourses	\$ -	\$ -	\$ 133,718	\$ 133,718

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2025

	Financial Assets at FVTPL	Financial Assets at FVTOCI
Financial Assets	Fund Beneficiary Certificate	Debt Instrument
Balance at January 1, 2025 Purchases Recognized in profit or loss (including other gains and losses)	\$ 61,417 16,705 23,246	\$ 133,718 - -
Net increase Balance at December 31, 2025	- \$ 101,368	33,987 \$ 167,705

For the year ended December 31, 2024

	Financial Assets at FVTPL	Financial Assets at FVTOCI Debt Instrument
Financial Assets	Fund Beneficiary Certificate
Balance at January 1, 2024 Purchases Recognized in profit or loss (including other gains and	\$ 42,362 16,704	\$ 85,148 -
losses) Net increase	2,351 -	- 48,570
Balance at December 31, 2024	\$ 61,417	\$ 133,718

3) Valuation techniques and inputs applied for Level 3 fair value measurement

Categories of Financial Instruments	Valuation Techniques and Input Values
Factored trade receivables to bank without recourses	As the effect of discounting was not significant, the fair value is measured based on the original invoice amount.
Fund beneficiary certificate	Asset-based approach: Assess the net asset value, which is evaluated based on the fair value of the latest financial statements of the invested target.

c. Categories of financial instruments

	December 31
		2025		2024
Financial assets
FVTPL
Mandatorily classified as at FVTPL	\$	101,368	\$	61,417
Financial assets at amortized cost (1)		6,882,780		7,595,212
Financial assets at FVTOCI
Investments in debt instruments
Factored trade receivables to bank without recourses		167,705		133,718
Financial liabilities
Financial liabilities at amortized cost (2)		13,852,470		12,748,822

• 1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables (excluding debt instruments), trade receivables from related parties, other receivables, and refundable deposits (included in other non-current assets).
• 2) The balances include financial liabilities at amortized cost, which comprise notes payable, trade payables, trade payables to related parties, other payables, current portion of long-term borrowings, long-term borrowings and deposits received (listed under other non-current liabilities).
• d. Financial risk management objectives and policies

The Company's major financial instruments included trade receivables, trade payables and short-term or long-term borrowings. The Company's corporate treasury function provides services to the business, coordinates access to financial markets, and monitors and manages the significant financial risks relating to the operations of the Company through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (currency risk and interest rate risk), credit risk and liquidity risk.

The corporate treasury function reports regularly to the board of directors, who monitors risks and policies implemented to mitigate risk exposures.

1) Market risk

The Company's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

There has been no change to the Company's exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Company had foreign currency denominated sales and purchases, which exposed the Company to foreign currency risk.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities are set out in Note 30.

Sensitivity analysis

The Company is mainly exposed to the fluctuations in the USD and the RMB.

The following table shows the Company's sensitivity to a 1% increase and decrease in New Taiwan dollars (i.e., the functional currency) against the relevant foreign currencies (the USD and RMB). A sensitivity rate of 1% is used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items, and their translation was adjusted at the end of the reporting period for a 1% change in foreign currency rates. A positive number below indicated an increase in pretax profit when the New Taiwan dollar weakened by 1% against the relevant currency. For a 1% strengthening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pretax profit and the balances below would be negative.

		USD Impact
	For the Year Ended December 31
	2025	2024
Profit or loss	\$ 61,439	\$ 69,529
	RMB Impact
	For the Year Ended December 31
	2025	2024
Profit or loss	\$ (123,189)	\$ (113,018)

The above impact on profit and loss was mainly attributable to the exposure on USD bank deposits, USD receivables, USD payables, RMB bank deposits and RMB payables at the end of the reporting period.

The Company's sensitivity to the USD decreased during the current period mainly because of the decrease in USD bank deposits. The Company's sensitivity to the RMB increased during the current period mainly because of an increase in RMB payables to related parties.

b) Interest rate risk

The carrying amounts of the Company's financial assets and financial liabilities with exposure to interest rate risks at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	\$ 3,977,141	\$ 4,462,760
Financial liabilities	665	686
Cash flow interest rate risk
Financial assets	269,692	229,082
Financial liabilities	636,090	733,950

Sensitivity analysis

The sensitivity analysis below was determined based on the Company's exposure to interest rates for non-derivative instruments at the end of the year. A 100-basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company's pre-tax profit for the years ended December 31, 2025 and 2024 would have decreased/increased by \$3,664 thousand and \$5,049 thousand, respectively, which was mainly attributable to the Company's exposure to interest rate risks on its floating-rate bank deposits and bank borrowings.

The Company's sensitivity to interest rates decreased during the current period mainly because of the decrease in floating-rate bank deposits.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in a financial loss to the Company. As of the end of the reporting period, the Company's maximum exposure to credit risk which will cause a financial loss to the Company due to failure of counterparties to discharge an obligation pertain to financial assets recognized as stated in the financial balance sheets.

The Company adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

To minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each trade debt at the end of the reporting period to ensure that adequate allowances are made for irrecoverable amounts. Thus, management believes the Company's credit risk was significantly reduced.

The Company transacts with a large number of unrelated customers and thus, no concentration of credit risk was observed.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Company had available unutilized short-term bank loan facilities set out in (b) below.

a) Liquidity and interest rate risk table for non-derivative financial liabilities

The following tables show the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed-upon repayment periods. The tables were been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The tables included both interest and principal cash flows.

For interest flows pertaining to floating rates, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

December 31, 2025

	Less than 3 Months	3 Months to 1 Year	Over 1 Year to 5 Years	More than 5 Years
Non-derivative financial liabilities
Non-interest bearing Lease liabilities	\$ 1,715,932 95	\$ 11,500,448 286	\$ - 318	\$ - -
Variable interest rate liabilities	52,063	57,521	418,811	148,983
	\$ 1,768,090	\$ 11,558,255	\$ 419,129	\$ 148,983

Further information on the maturity analysis of the above financial liabilities was as follows:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Variable interest rate liabilities	\$ 109,584	\$ 418,811	\$ 148,983	\$ -	\$	- \$ -
December 31, 2024
		Less than 3 Months	3 Months to 1 Year	Over 1 Year to 5 Years		More than 5 Years
Non-derivative financial liabilities
Non-interest bearing Lease liabilities	\$	3,942,232 210	\$ 8,072,269 490	\$	371 -	\$	- -
Variable interest rate liabilities		52,538	58,975		426,565	250,736
	\$	3,994,980	\$ 8,131,734	\$	426,936	\$ 250,736

Further information on the maturity analysis of the above financial liabilities was as follows:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Variable interest rate liabilities	\$ 111,513	\$ 426,565	\$ 250,736	\$ -	\$ -	\$ -

b) Financing facilities

	December 31
	2025	2024
Unsecured bank loan facilities
Amount used Amount unused	\$ - 3,814,300	\$ - 3,827,850
	\$ 3,814,300	\$ 3,827,850
Secured bank overdraft facilities Amount used Amount unused	\$ 636,090 -	\$ 733,950 -
	\$ 636,090	\$ 733,950

e. Transfers of financial assets

Factored trade receivables that are not yet overdue at the end of the year were as follows:

December 31, 2025

Counterparty	Receivables Factoring Proceeds	Amount Reclassified to Other Receivables	Advances Received - Unused	Advances Received - Used	Annual Interest Rates on Advances Received (Used) (%)
Mega International Commercial Bank Co., Ltd. BNP Paribas S.A.	\$ 375,016 45,798	\$ - -	\$ - -	\$ 375,016 45,798	5.52-6.33 4.80-5.10
	\$ 420,814	\$ -	\$ -	\$ 420,814

December 31, 2024

Counterparty	Receivables Factoring Proceeds	Amount Reclassified to Other Receivables	Advances Received - Unused	Advances Received - Used	Annual Interest Rates on Advances Received (Used) (%)
Mega International Commercial Bank Co., Ltd. BNP Paribas S.A.	\$ 527,759 47,717	\$ - -	\$ - -	\$ 527,759 47,717	5.89-7.42 5.71-5.78
	\$ 575,476	\$ -	\$ -	\$ 575,476

Pursuant to the agreements, losses from commercial disputes (such as sales returns and discounts) are borne by the Company, while losses from credit risk are borne by the bank.

28. TRANSACTIONS WITH RELATED PARTIES

Details of transactions between the Company and other related parties are disclosed below.

a. Related party name and category

Related Name	Related Party Category
RPS SpA	Essential related party (whose managing director is the key management personnel of the Company)
FSP Technology Inc.	Key management personnel
Potentia Technology Inc. Limited	Subsidiary
Voltronic Power Technology (Shen Zhen) Corp.	Subsidiary
Zhongshan Voltronic Power Electronics Limited	Subsidiary

b. Sales of goods

		For the Year Ended December 31
Line Item	Related Party Category	2025	2024
Sales	Essential related parties Key management personnel Subsidiary - Potentia Technology Inc. Limited	\$ 523,539 109,842 4,077	\$	833,858 144,853 -
		\$ 637,458	\$	978,711

The selling prices of the goods sold to the related parties in the table above are not comparable, as these goods were not sold to other customers in 2025 and 2024. Payment terms for goods sold to related parties are 90-150 days, respectively, from the end of the month and 0-180 days for general customers.

c. Purchases of goods

		For the Year Ended December 31
Related Party Category	2025	2024
Subsidiary - Potentia Technology Inc. Limited	\$ 13,268,475	\$ 15,505,588
Subsidiary - Voltronic Power Technology (Shen Zhen) Corp.	513,282	469,680
Subsidiary - Zhongshan Voltronic Power Electronics Limited	239,266	247,796
	\$ 14,021,023	\$ 16,223,064

The purchase prices of the goods purchased from the related parties in the table above are not comparable, as these same goods were not purchased from other suppliers in 2025 and 2024. Payment terms of goods purchased from related parties are 270-360 days following the end of each month, and 30-90 days for general suppliers.

d. Receivables from related parties (excluding loans to related parties)

		December 31
Line Item	Related Party Category		2025	2024
Trade receivables from related parties	Essential related parties Key management personnel Subsidiary - Potentia Technology Inc. Limited	\$	92,968 48,865 3,223	\$	105,883 67,659 -
		\$	145,056	\$	173,542

The outstanding trade receivables from related parties were unsecured. In 2025 and 2024, no impairment loss was recognized for trade receivables from related parties.

e. Payables to related parties (excluding loans from related parties)

		December 31
Line Item	Related Party Category	2025	2024
Trade payables to related parties	Subsidiary - Potentia Technology Inc. Limited	\$ 12,758,405	\$ 11,548,698
	Subsidiary - Voltronic Power Technology (Shen Zhen) Corp.	256,650	234,919
	Subsidiary - Zhongshan Voltronic Power Electronics Limited	99,805	132,602
		\$ 13,114,860	\$ 11,916,219

The outstanding trade payables to related parties are unsecured.

f. Remuneration of key management personnel

	For the Year Ended December 31
	2025		2024
Short-term employee benefits Post-employee benefits Share-based payments	\$ 114,408 556 17,272	\$	110,204 553 34,201
	\$ 132,236	\$	144,958

The remuneration of directors and key executives, as determined by the remuneration committee, is based on the performance of individuals and market trends.

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings:

	December 31
	2025	2024
Land Building	\$ 587,160 730,071	\$ 587,160 745,771
	\$ 1,317,231	\$ 1,332,931

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the Company and the exchange rates between the foreign currencies and the New Taiwan dollar are disclosed. The significant financial assets and liabilities denominated in foreign currencies were as follows:

December 31, 2025

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	\$ 221,633	31.4300 (USD:NTD)	\$	6,965,929
RMB	10,382	4.4716 (RMB:NTD)		46,423
Non-monetary items
Investments accounted for using the equity
method USD	463,685	31.4300 (USD:NTD)		14,573,634
Financial liabilities
Monetary items
USD	26,154	31.4300 (USD:NTD)		822,025
RMB	2,765,303	4.4716 (RMB:NTD)		12,365,327
December 31, 2024
	Foreign Currency (In Thousands)	Exchange Rate		Carrying Amount (In Thousands)
Financial assets
Monetary items USD	\$ 232,923	32.7850 (USD:NTD)	\$	7,636,366
RMB	236	4.5608 (RMB:NTD)		1,077 (Continued)

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Non-monetary items Investments accounted for using the equity method USD	\$ 407,571	32.7850 (USD:NTD)	\$ 13,362,220
Financial liabilities
Monetary items USD RMB	20,847 2,478,274	32.7850 (USD:NTD) 4.5608 (RMB:NTD)	683,483 11,302,912 (Concluded)

The significant realized and unrealized foreign exchange gains (losses) were as follows:

		For the Year Ended December 31
	2025		2024
Foreign Currencies	Exchange Rate	Net Foreign Exchange Gains (Losses)	Exchange Rate	Net Foreign Exchange Gains (Losses)
RMB USD	4.3722 (RMB:NTD) 31.1958 (USD:NTD)	\$ 141,526 (338,962)	4.5194 (RMB:NTD) 32.1638 (USD:NTD)	\$ (517,598) 288,762
		\$ (197,436)		\$ (228,836)

31. SEPARATELY DISCLOSED ITEMS

• a. Information on significant transactions:
• 1) Financing provided to others: Table 1
• 2) Endorsements/guarantees provided: None
• 3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint ventures): Table 2
• 4) Total purchases from or sales to related parties amounting to at least NT\$100 million or 20% of the paid-in capital: Table 3
• 5) Receivables from related parties amounting to at least NT\$100 million or 20% of the paid-in capital: Table 4

• b. Information on investees: Table 5

• c. Information on investments in mainland China

• 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 6
• 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: Table 7
  • a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year.
  • b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year.
  • c) The amount of property transactions and the amount of the resultant gains or losses.
  • d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes.
  • e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds.
  • f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance	for the Period Ending Balance Actual Amount	Borrowed	Interest Rate (%)	Nature of Financing (Note 2)	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Item	Collateral Value	Financing Limit for Each Borrower	Aggregate Financing Limit
1	Orchid Power (Shen Zhen) Manufacturing Company	Zhongshan Voltronic Power Electronics Limited	Other receivables from related parties	Yes	\$ 178,864 (RMB 40,000)	\$ - (RMB -)	\$ - (RMB -)	3.45	2	\$	- Operating capital financing funds	\$ -	-	\$	- \$ 6,446,011 \$	6,446,011
2	Subsidiaries - Voltronic Power Technology (Shen Zhen) Corp.	Zhongshan Voltronic Power Electronics Limited Zhongshan Voltronic Power Electronics Limited	Other receivables from related parties Other receivables from related parties	Yes Yes	670,740 (RMB 150,000) 670,740 (RMB 150,000)	- (RMB -) 670,740 (RMB 150,000)	- (RMB -) 670,740 (RMB 150,000)	3.35 3.00	2 2		- Operating capital financing funds - Operating capital financing funds	- -	- -	- -	5,146,539 5,146,539	5,146,539 5,146,539

Note 1: Number column as follows:

a. "0" for the issuer.

b. Investees are numbered from "1".

Note 2: Number 1 represents business relationship between companies or firms. Number 2 represents short-term financing is necessary between companies or firms.

Note 3: The aggregate financing limit shall not exceed 40% of the Company's net equity value based on its latest financial statements which were audited and attested by certified public accountants.

Note 4: a. The aggregate financing limit shall not exceed 40% of the net asset value of Voltronic Power Technology Corp.

b. Financing limit for each borrower for the business relationship, the financing amount on each individual loan shall not exceed 30% of total business transaction amount or 10% of net assets value was in accordance with currently audited or reviewed financial statements by accountant; the lower value is final. The business transaction amount referred to the one with higher purchase or sales amount in the current year starting from one month before application date, for the necessary of short-term financing, the financing amount on each individual loan should not exceed 10% of net asset value in accordance with currently audited or reviewed financial statements by accountant but the restriction shall not apply to inter-company loans of funds between overseas subsidiaries in which the Company holds, directly or indirectly, 100% of the voting shares, nor to loans of fund to the Company by any overseas subsidiary in which the Company holds, directly or indirectly, 100% of the voting shares.

Note 5: The foreign-currency amounts of the highest balance for the period and ending balance were converted by exchange rate RMB1 into NT\$4.4716 as of December 31, 2025.

TABLE 2

VOLTRONIC POWER TECHNOLOGY CORP.

SIGNIFICANT MARKETABLE SECURITIES HELD DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies)

		Relationship with the			December 31, 2025
Holding Company Name	Type and Name of Marketable Securities	Holding Company (Note 1)	Financial Statement Account	Number of Stock/Unit	Percentage of Carrying Value Ownership (%)		Fair Value	Note
Voltronic Power Technology	Hoshun Hing Intelligent Mobile Limited Partnership	-	Financial assets at FVTPL	-	\$ 101,368	1.11	\$ 101,368	-

Note 1: If the issuer of the securities is not a related party, this field is not required to be filled.

Note 2: Securities required to be disclosed in accordance with the principle of materiality.

Note 3: Refer to Tables 5 and 6 for information regarding investment in subsidiaries.

TABLE 3

VOLTRONIC POWER TECHNOLOGY CORP.

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT\$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

					Transaction Details			Abnormal Transaction	Notes/Accounts Payable or Receivable
Company Name	Related Party	Nature of Relationship	Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total	Note
Voltronic Power Technology Corp.	RPS SpA	Essential related parties	(Sales)	\$ (523,539)	(3)	Net 150 days from the end of the	No identical item	0-180 days	\$ 92,968	3	-
	FSP Technology Inc.	Key management personnel	(Sales)	(109,842)	(1)	month of when invoice is issued Net 90 days from the end of the month of when invoice is issued	No identical item	0-180 days	48,865	2	-
	Potentia Technology Inc. Limited	Subsidiary	Purchase	13,268,475	94	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	(12,758,405)	(97)	-
	Voltronic Power Technology (Shen Zhen) Corp.	Subsidiary	Purchase	513,282	4	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(256,650)	(2)	-
	Zhongshan Voltronic Power Electronics Limited	Subsidiary	Purchase	239,266	2	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(99,805)	(1)	-
Potentia Technology Inc. Limited	Voltronic Power Technology Corp.	Parent company	(Sales)	(13,268,475)	(85)	Net 360 days from the end of the month of when invoice is issued	Note 2	Note 2	12,758,405	96	-
	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	(Sales)	(550,292)	(4)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	54,884	1	-
	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	Purchase	4,334,961	28	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	(4,281,784)	(32)	-
	Zhongshan Voltronic Power Electronics Limited	The same parent company	(Sales)	(860,380)	(5)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	151,297	1	-
	Zhongshan Voltronic Power Electronics Limited	The same parent company	Purchase	8,704,356	56	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	(7,695,031)	(57)	-
	Voltronic Power Technology (Vietnam) Company Limited	The same parent company	(Sales)	(689,318)	(4)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	305,178	2	-
	Voltronic Power Technology (Vietnam) Company Limited	The same parent company	Purchase	1,148,129	7	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(1,016,844)	(8)	-
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	(Sales)	(261,094)	(2)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	40,575	1	-
Voltronic Power Technology (Shen Zhen) Corp.	Voltronic Power Technology Corp.	Parent company	(Sales)	(513,282)	(10)	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	256,650	6	-
	Potentia Technology Inc. Limited	The same parent company	(Sales)	(4,334,961)	(85)	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	4,281,784	92	-
	Potentia Technology Inc. Limited	The same parent company	Purchase	550,292	17	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(54,884)	(5)	-
	Zhongshan Voltronic Precision Inc.	The same parent company	Purchase	645,436	20	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(151,284)	(13)	-
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	Purchase	177,182	5	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(99,252)	(8)	-
Zhongshan Voltronic Power Electronics Limited	Voltronic Power Technology Corp.	Parent company	(Sales)	(239,266)	(3)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	99,805	1	-
	Potentia Technology Inc. Limited	The same parent company	(Sales)	(8,704,356)	(92)	Net 360 days from the end of the month of when invoice is issued	Note 2	Note 2	7,695,031	95	-
	Potentia Technology Inc. Limited	The same parent company	Purchase	860,380	11	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(151,297)	(6)	-
	Zhongshan Voltronic Precision Inc.	The same parent company	Purchase	927,490	12	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(446,232)	(16)	-
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	(Sales)	(472,957)	(5)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	280,423	3	-
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	Purchase	129,434	2	Net 270 days from the end of the month of when invoice is issued	No identical item	0-60 days	(82,439)	(3)	-

(Continued)

		Nature of Relationship			Transaction Details			Abnormal Transaction	Notes/Accounts Payable or Receivable
Company Name	Related Party		Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total	Note
Zhongshan Voltronic Precision Inc.	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	(Sales)	\$ (645,436)	(35)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	\$ 151,284	21	-
	Zhongshan Voltronic Power Electronics Limited	The same parent company	(Sales)	(927,490)	(51)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	446,232	62	-
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	(Sales)	(259,607)	(14)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	127,095	18	-
Voltronic Power Technology (Vietnam) Company Limited	Potentia Technology Inc. Limited	The same parent company	(Sales)	(1,148,129)	(100)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	1,016,844	100	-
	Potentia Technology Inc. Limited	The same parent company	Purchase	689,318	93	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(305,178)	(93)	-
Orchid Power (Shen Zhen) Manufacturing Company	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	(Sales)	(177,182)	(6)	Net 270 days from the end of the month of when invoice is issued	No identical item	0-60 days	99,252	15	-
	Potentia Technology Inc. Limited	The same parent company	Purchase	261,094	15	Net 270 days from the end of the month of when invoice is issued	No identical item	0-60 days	(40,575)	(4)	-
	Zhongshan Voltronic Power Electronics Limited	The same parent company	(Sales)	(129,434)	(4)	Net 270 days from the end of the month of when invoice is issued	No identical item	0-60 days	82,439	12	-
	Zhongshan Voltronic Power Electronics Limited	The same parent company	Purchase	472,957	27	Net 270 days from the end of the month of when invoice is issued	No identical item	0-60 days	(280,423)	(26)	-
	Zhongshan Voltronic Precision Inc.	The same parent company	Purchase	259,607	15	Net 270 days from the end of the month of when invoice is issued	No identical item	0-60 days	(127,095)	(12)	-

Note 1: Above amounts present in New Taiwan dollars (NT\$). Foreign currency is converted into NT\$ as of December 31, 2025; the amount of income accounts are converted by average exchange rate into New Taiwan dollar (NT\$) as of 2025.

Note 2: There is no sales to unrelated parties.

(Concluded)

TABLE 4

VOLTRONIC POWER TECHNOLOGY CORP.

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT\$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

					Overdue		Amount
Company Name	Related Party	Relationship	Ending Balance (Note 1)	Turnover Rate	Amount	Actions Taken	Received in Subsequent Period (Note 3)	Allowance for Impairment Loss	Note
Trade receivables
Potentia Technology Inc. Limited	Voltronic Power Technology	Parent company	\$ 12,758,405	1.09	\$ -	-	\$ 1,982,947	\$ -	-
	Zhongshan Voltronic Power Electronics Limited	The same parent company	151,297	5.50	-	-	151,297	-	-
	Voltronic Power Technology (Vietnam) Company Limited	The same parent company	305,178	2.34	-	-	63,737	-	-
Voltronic Power Technology	Voltronic Power Technology	Parent company	256,650	2.09	-	-	96,497	-	-
(Shen Zhen) Corp.	Potentia Technology Inc. Limited	The same parent company	4,281,784	1.02	-	-	674,558	-	-
Zhongshan Voltronic Power	Potentia Technology Inc. Limited	The same parent company	7,695,031	1.20	-	-	1,338,215	-	-
Electronics Limited	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	280,423	1.74	-	-	56,873	-	-
Zhongshan Voltronic Precision Inc.	Zhongshan Voltronic Power Electronics Limited	The same parent company	446,232	2.09	-	-	210,948	-	-
	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	151,284	4.94	-	-	94,566	-	-
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	127,095	2.24	-	-	25,696	-	-
Voltronic Power Technology (Vietnam) Company Limited	Potentia Technology Inc. Limited	The same parent company	1,016,844	1.32	-	-	175,031	-	-
Other receivables
Voltronic Power Technology (Shen Zhen) Corp.	Zhongshan Voltronic Power Electronics Limited	The same parent company	672,458 (Note 2)	-	-	-	1,709	-	-

Note 1: The foreign-currency amounts were translated into exchange rate US\$1 into NT\$31.4300 and RMB1 into NT\$4.4716 as of December 31, 2025.

Note 2: Including interest receivables \$1,709 thousand and equipment receivable \$9 thousand.

Note 3: The amount received in subsequent period was as of February 28, 2025.

TABLE 5

VOLTRONIC POWER TECHNOLOGY CORP.

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies, and Shares)

					Original Investment Amount		As of December 31, 2025		Net Income
Investor Company	Investee Company	Location	Main Businesses and Products	December 31, 2025	December 31, 2024	Number of Stock (Shares)	%	Carrying Value	(Loss) of the Investee	Share of Profit (Loss)	Note
Voltronic Power Technology Corp.	Voltronic International Corp.	Anguilla	Investment activities	\$ 888,285 (US\$ 28,000)	\$ 888,285 (US\$ 28,000)	28,000	100	\$ 13,739,243	\$ 1,203,227	\$ 1,203,737	Notes 1 and 2
	Voltronic Power Technology (Vietnam) Company Limited	Bac Ninh Province, Vietnam	Design, manufacture and sale of UPS and inverter	30,945 (US\$ 1,000)	30,945 (US\$ 1,000)	-	100	816,962	234,478	234,478	Notes 1 and 3
	Inversolenergy Tech, Inc.	U.S.A.	Marketing, technical support and after-sales service of UPS and inverter	16,135 (US\$ 500)	16,135 (US\$ 500)	100	100	17,429	1,343	1,343	Note 1
Voltronic International Corp.	Potentia Technology Inc. Limited Hong Kong Voltronic International H.K. Corp. Limited	Hong Kong	Sale of uninterruptible power systems (UPS) and inverter Investment activities	- 888,285 (US\$ 28,000)	- 888,285 (US\$ 28,000)	- 217,240	100 100	60,194 13,682,291	20,378 1,182,849	20,378 1,182,849	Note 1 Note 1

Note 1: The Company was subsidiary.

Note 2: The gain and loss of net amount of investment which recognized in the current period is the reversal of unrealized profit of the previous upstream transaction of the current period of \$989 thousand and the deduction of unrealized profit of upstream transaction of the current period of \$1,515 thousand and the addition of realized disposition of property, plant and equipment benefit of \$1,036 thousand in the sidestream transaction.

Note 3: This company is a "limited company" without stock issuance.

Note 4: For information of investments in mainland China, refer to Table 6.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies)

1. Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period and repatriations of investment income in the mainland China area:

							Remittance of Funds			Accumulated
Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025		Outflow		Inflow		Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Notes 2 and 3)	Carrying Amount as of December 31, 2025 (Notes 2 and 3)	Accumulated Repatriation of Investment Income as of December 31, 2025
Voltronic Power Technology (Shen Zhen) Corp.	Design, manufacture and sale of UPS and inverter	\$ 64,630 (US\$ 2,000)	b.	\$ 64,630 (US\$	2,000)	\$ -	\$	-	\$ (US\$	64,630 2,000)	\$ 8,580	100	\$ 8,580	\$ 5,146,539	\$ -
Orchid Power (Shen Zhen) Manufacturing Company	Design, manufacture and sale of UPS and inverter	30,027 (US\$ 1,000)	b.	30,027 (US\$	1,000)	-		-	(US\$	30,027 1,000)	940,592	100	940,592	6,446,011	-
Zhongshan Voltronic Power Electronics Limited	Design, manufacture and sale of UPS and inverter	2,794,537 (US\$ 25,000) (RMB 450,000)	b.	793,628 (US\$ 25,000)		-		-	(US\$	793,628 25,000)	233,677	100	233,677	7,730,334	-
	Zhongshan Voltronic Precision Inc. Design, manufacture and sale of UPS and inverter related components	250,401 (RMB 56,000)	c.		-	-		-		-	76,643	100	76,643	536,218	-

1. Limit on the amount of investment in the mainland China area:

Accumulated Outflow Remittance for Investment in Mainland China as of December 31, 2025	Investment Amount Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
\$ 888,285 (Note 4) (US\$ 28,000)	\$ 888,285 (Note 4) (US\$ 28,000)	\$ 5,731,809

Note 1: Investment methods are classified into the following three categories:

• a. Directly invest in a company in mainland China.
• b. Investment in mainland China through an existing company established in a third region.
• c. Other methods.
• Note 2: The investment gain or loss and the carrying amount as of December 31, 2025:

The Company recognized its reinvested companies of Voltronic Power Technology (Shen Zhen) Corp., Orchid Power (Shen Zhen) Manufacturing Company and Zhongshan Voltronic Power Electronics Limited through its subsidiary of Voltronic International H.K. Corp. Limited, and through its subsidiary of Zhongshan Voltronic Power Electronics Limited recognized the investment gains of its reinvested company of Zhongshan Voltronic Precision Inc. as of December 31, 2025 and the carrying amounts on December 31, 2025.

• Note 3: The amount was calculated based on the financial statements which were audited and attested by certified public accounts engaged by Taiwan's parent company.
• Note 4: The amount was calculated by the actual outflow exchange rate from the each times.

TABLE 7

VOLTRONIC POWER TECHNOLOGY CORP.

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

1. The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year.

		Purchase/Sale				Notes/Accounts Receivable (Payable)		Unrealized
Investee Company	Transaction Type	Amount	%	Price	Payment Terms	Comparison with Normal Transactions		%	Gain
Voltronic Power Technology (Shen Zhen) Corp.	Purchase	\$ 4,639,278	33	Set by agreement of both parties	Net 270 days from the end of the month of when invoice is issued	No identical item	\$ (4,512,147)	(34)	\$	1,515
Zhongshan Voltronic Power Electronics Limited	Purchase	8,227,536	58	Set by agreement of both parties	Net 270 days from the end of the month of when invoice is issued	No identical item	(8,211,978)	(63)		-

1. The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year: None.

2. The amount of property transactions and the amount of the resultant gains or losses: None.

3. The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None.

4. The highest balance, the ending balance, the interest rate range, and total current period interest with respect to financing of funds: None.

5. Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services: None.

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item	Statement Index
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents	1
Statement of notes receivable and trade receivables, net	2
Statement of other receivables, net	3
Statement of inventories, net	4
Statement of other current assets	5
Statement of financial assets at fair value through profit or loss - non-current	6
Statement of investments accounted for using the equity method	7
Statement of changes in property, plant and equipment	Note 11
Statement of changes in accumulated depreciation of property, plant and equipment	Note 11
Statement of changes in right-of-use assets	8
Statement of changes in accumulated depreciation of right-of-use assets	9
Statement of changes in other intangible assets	Note 13
Statement of deferred tax assets	Note 22
Statement of other non-current assets	10
Statement of contract liabilities	Note 20
Statement of notes payable and trade payables	11
Statement of other payables	Note 17
Statement of other current liabilities	12 and Note 17
Statement of long-term borrowing	13
Statement of lease liabilities	14
Major Accounting Items in Profit or Loss
Statement of operating revenue	15
Statement of operating costs	16
Statement of operating expenses	17
Statement of finance costs	Note 21
Statement of labor, depreciation, and amortization by function	18

\$ 4,247,187

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies)

Item	Summary	Amount
Petty cash		\$ 354
Foreign currencies deposits	Mega International Commercial Bank (including US\$4,447 thousand @31.4300, EUR443 thousand @36.9000 and RMB10,376 thousand @4.4716)	202,494
Demand deposits	Mega International Commercial Bank	67,198
Time deposits	Mega International Commercial Bank (including US\$126,540 thousand @31.4300)	3,977,141

• 68 -

STATEMENT OF NOTES RECEIVABLE AND TRADE RECEIVABLES, NET DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Client Name	Summary	Amount	Note
Notes receivable Client A Client B	Payments Payments	\$ 21,836 1,282 \$ 23,118
Trade receivables from non-related parties Client C Other (Note) Less: Allowance for impairment loss	Payments Payments	\$ 683,947 1,978,658 (39,964) \$ 2,622,641
Trade receivables from related parties Potentia Technology Inc. Limited FSP Technology Inc. RPS SpA	Payments Payments Payments	\$ 3,223 48,865 92,968 \$ 145,056

Note: The balance of each individual client included in others does not exceed 5% of the account balance.

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF OTHER RECEIVABLES, NET DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Interest receivable Tax refund receivables	Tax refund receivables of business tax	\$ 11,900 7,670
		\$ 19,570

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF INVENTORIES, NET DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

			Amount
Item	Summary	Cost	Net Realizable Value	Note
Finished goods	Uninterrupted power systems and inverters etc.	\$ 37,418	\$ 55,770	Note
Work in progress	Uninterrupted power systems and inverters etc.	24,260	24,260	Note
Semi-finished goods	Uninterrupted power systems and inverters etc.	1,481	1,481	Note
Raw materials	Uninterrupted power systems and inverters etc.	95,750	95,750	Note
Less: Allowance for impairment loss		(6,181)	-
		\$ 152,728	\$ 177,261

Note: The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale.

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF OTHER CURRENT ASSETS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Summary	Amount
Prepayments expense	Insurance fees	\$ 1,372
	Exhibition signup fee	4,679
	Import and export fees	2,452
	Business travel expenses	1,061
	Other (Note)	2,105
Other prepayments	Prepayments of manufacturing molds	162
		\$ 11,831

Note: The balance of each individual item included in others does not exceed 5% of the account balance.

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Investment Type and Name	Number of Shares	Fair Value	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Fair Value	Collateral
Unlisted shares
Hoshun Hing Intelligent Mobile Limited Partnership	-	\$ 61,417	-	\$ 39,951	-	\$ -	-	\$ 101,368	Nil

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars and Shares)

		Balance, January 1, 2025		Additions in Investment	Decrease in Investment			Balance, December 31, 2025		Market Value or Net Asset Value (Note 1)
	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Unit Price (NT\$)	Total Amount	Collateral
Voltronic International Corp. (Note 2) Voltronic Power Technology (Vietnam) Company Limited (Notes 3 and 5)	28,000 -	\$ 12,719,971 625,479	- -	\$ 1,019,272 191,483	- -	\$	- 28,000 - -	\$ 13,739,243 816,962	\$ 491 -	\$ 13,743,485 816,962	Nil Nil
Inversolenergy Tech, Inc. (Note 4)	100	16,769	-	660	-		- 100	17,429	174	17,429	Nil
		\$ 13,362,219		\$ 1,211,415		\$	-	\$ 14,573,634		\$ 14,576,876

Note 1: Net asset value and net asset value per share are estimated based on the audited net asset value of the investee company as of December 31, 2025.

Note 4: Increase in the current period are by investment accounted for using the equity method of subsidiaries, associates and joint ventures amounting to \$1,343 thousand, and deduct exchange differences on translating the financial statements of foreign operations amounting to \$683 thousand.

Note 5: This company is a "limited company" without stock issuance.

Note 2: Increase in the current period are caused by employee unearned benefit recognized amounting to \$33,543 thousand, dividends of NT\$972 thousand related to restricted stock units that failed to meet the vesting conditions but are not required to be returned, by investment accounted for using the equity method of subsidiaries, associates and joint ventures amounting to \$1,203,227 thousand, reversal of unrealized gross profit from upstream transactions recognized in the previous period amounting to \$989 thousand, and deduct unrealized gross profit from upstream transactions recognized in the current period amounting to \$1,515 thousand and realized gain of \$1,036 thousand on disposal of property, plant and equipment between intercompany transaction, and deduct exchange differences on translating the financial statements of foreign operations amounting to \$218,980 thousand.

Note 3: Increase in the current period are by investment accounted for using the equity method of subsidiaries, associates and joint ventures amounting to \$234,478 thousand, and deduct exchange differences on translating the financial statements of foreign operations amounting to \$42,995 thousand.

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Balance at January 1, 2025	Additions	Disposals	Balance at December 31, 2025	Note
Transportation equipment	\$ 2,327	\$ 722	\$ -	\$ 3,049

STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION AND ACCUMULATED IMPAIRMENT OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Balance at January 1, 2025	Additions	Disposals	Balance at December 31, 2025	Note
Transportation equipment	\$ 1,681	\$ 706	\$ -	\$ 2,387

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF OTHER NON-CURRENT ASSETS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Refundable deposits	Photocopier and rental transportation equipment deposit, etc.	\$ 583
Prepayments for equipment		590
		\$ 1,173

STATEMENT OF NOTES PAYABLE AND TRADE PAYABLES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Vendor Name	Summary	Amount	Note
Notes payable
Non-related parties
Taiwan Yuasa Battery Co., Ltd.	Payments	\$ 14,675
Soltec Power Co., Ltd.	Payments	1,776
Supplier A	Payments	1,764
Others (Note)	Payments	2,416
		\$ 20,631
Related parties
Potentia Technology Inc. Limited	Payments	\$ 12,758,405
Voltronic Power Technology (Shen Zhen) Corp.	Payments	256,650
Zhongshan Voltronic Power Electronics Limited	Payments	99,805
		\$ 13,114,860

Note: The balance of each individual item included in others does not exceed 5% of the account balance.

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF OTHER CURRENT LIABILITIES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Other current liabilities	Withholding of employment income tax and labor	\$
Receipts under custody	and health insurance	2,231

VOLTRONIC POWER TECHNOLOGY CORP.

STATEMENT OF LONG-TERM BORROWINGS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Creditor	Summary	Due Within One Year	Due Over One Year	Contract Period	Rate	Mortgage or Guarantee
Cathay United Bank	Secured borrowings	\$ 97,860	\$ 538,230	2022.03.31- 2032.03.31	1.9976%	Land and buildings

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Summary	Lease Term	Discount Rate	Not Later than 1 Year	Later than 1 Year	Note
Transportation equipment	Company car	2025.11.17-2027.11.16	5.58%	\$ 354	\$ 311

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Sales of goods
Total amount of sales of goods	Sales revenue from uninterrupted power systems and inverters	\$ 17,792,435
Less: Sales returns and discounts		(228,794)
		\$ 17,563,641

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Amount
Merchandise, beginning of year	\$ 28,557
Additions: Merchandise purchased	13,020,852
Deductions: Merchandise, end of year	(37,418)
Reclassified other operating costs	(4,168)
Purchase cost	13,007,823
Raw materials, beginning of year	66,660
Additions: Raw material purchased	1,052,360
Deductions: Raw material, end of year	(95,750)
Direct material and supplies used	1,023,270
Work-in-progress, beginning of year	43,124
Semi-finished goods, beginning of year	1,446
Manufacturing expense	137,426
Deductions: Work-in-progress, end of year	(24,260)
Deductions: Semi-finished goods, end of year	(1,481)
Cost of goods sold, total	1,179,525
Additions: Loss on inventory write-down	2,421
Additions: Other operating costs	4,985
Operating costs	\$ 14,194,754

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Selling and Marketing Expenses	General and Administrative Expenses	Research and Development Expenses
Payroll and related expense (including pension
expenses and share-based payments)	\$ 86,740	\$ 188,993	\$ 130,231
Advertising expense	15,539	-	-
Depreciation expense	4,100	16,156	9,154
Commission expense	39,654	-	-
Insurance expense	27,312	8,040	6,216
Import and export expense	16,000	-	-
Examination expense	-	-	17,696
Others (Note)	23,683	50,461	23,197
	\$ 213,028	\$ 263,650	\$ 186,494

Note: Each individual item included in others does not exceed 5% of the account.

STATEMENT OF LABOR, DEPRECIATION, DEPLETION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025				2024
		Classified as Cost of Goods Sold	Classified as Operating Expenses	Total		Classified as Cost of Goods Sold	Classified as Operating Expenses		Total
Labor cost
Salary and bonus	\$	66,119	\$ 381,730	\$ 447,849	\$	52,971	\$ 490,362		\$ 543,333
Labor and health insurance		4,259	16,364	20,623		3,464	15,261		18,725
Pension		1,419	7,234	8,653		1,229	6,710		7,939
Director's remuneration		-	17,000	17,000		-	17,000		17,000
Others		5,335	11,133	16,468		5,370	11,841		17,211
	\$	77,132	\$ 433,461	\$ 510,593	\$	63,034	\$ 541,174		\$ 604,208
Depreciation expense	\$	20,672	\$ 29,410	\$ 50,082	\$	19,959	\$ 29,143	\$	49,102
Amortization expense	\$	-	\$ 4,905	\$ 4,905	\$	46	\$ 7,089	\$	7,135

• Note 1. As of December 31, 2025 and 2024, the Company had 219 and 209 employees, respectively, of which 6 are directors not concurrently serving as employees.
• Note 2. As of December 31, 2025 and 2024, the average of employee benefits expense were \$2,317 thousand and \$2,893 thousand, respectively. ("The total employee benefits expense - total director's remuneration"/"Headcount - The population of directors not concurrently serving as employees").
• Note 3. As of December 31, 2025 and 2024, the average of employee's salary and bonus were \$2,103 thousand and \$2,677 thousand, respectively. ("The total employee's salary and bonus"/"Headcount - The population of directors not concurrently serving as employees").
• Note 4. Changes in average of employee salaries and bonus was -21.44%. ("The average of employee's salary and bonus in current period - The average of employee's salary and bonus in the previous period"/The average of employee's salary and bonus in the previous period).
• Note 5. The Company has set the audit committee. Consequently, there is no supervisors.
• Note 6. The Company has set the remuneration committee to assist the board of directors execute and evaluate the Company's overall salary and benefit policy and the director and executive's remuneration.