Voltronic Power Technology Corp. and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2025 and 2024 and Independent Auditors’ Review Report

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders

Voltronic Power Technology Corp.

Introduction

We have reviewed the accompanying consolidated balance sheets of Voltronic Power Technology Corp. and its subsidiaries (the Group) as of March 31, 2025 and 2024, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the consolidated financial position of the Group as at March 31, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the three months then ended March 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Cheng-Chuan Yu and Jui-Hsuan Ho.

Deloitte & Touche
Taipei, Taiwan
Republic of China

May 13, 2025

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' review report and the accompanying consolidated 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' review report and consolidated financial statements shall prevail.

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)

	March 31, 2025		December 31, 2024		March 31, 2024
ASSETS	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 8,042,543	44	$ 6,556,415	38	$ 6,638,702	41
Financial assets at amortized cost - current (Notes 8 and 30)	3,278	-	-	-	-	-
Notes receivable (Notes 9 and 21)	70,714	-	104,745	1	42,674	-
Trade receivables (Notes 9 and 21)	2,820,048	15	3,169,541	18	2,450,332	15
Trade receivables from related parties (Notes 9, 21 and 29)	149,870	1	175,533	1	107,127	1
Other receivables (Note 9)	73,722	1	67,979	-	47,666	-
Inventories (Note 10)	2,025,281	11	2,092,788	12	1,782,610	11
Prepayments (Note 15)	187,452	1	256,431	2	182,102	1
Total current assets	13,372,908	73	12,423,432	72	11,251,213	69
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 7 and 28)	71,977	-	61,417	-	42,496	-
Property, plant and equipment (Notes 12, 30 and 31)	4,361,514	24	4,390,165	25	4,443,864	27
Right-of-use assets (Note 13)	337,701	2	301,416	2	360,543	2
Other intangible assets (Note 14)	10,341	-	11,795	-	16,187	-
Deferred tax assets (Note 4)	134,397	1	94,786	1	109,972	1
Other non-current assets (Note 15)	44,901	-	38,463	-	69,906	1
Total non-current assets	4,960,831	27	4,898,042	28	5,042,968	31
TOTAL	$ 18,333,739	100	$ 17,321,474	100	$ 16,294,181	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Contract liabilities - current (Note 21)	$ 395,966	2	$ 483,445	3	$ 379,716	2
Notes payable (Note 17)	-	-	6	-	61	-
Trade payables (Note 17)	4,369,859	24	4,342,762	25	4,145,800	26
Trade payables to related parties (Note 29)	1,714	-	7,322	-	22,801	-
Other payables (Note 18)	1,061,927	6	1,202,418	7	973,532	6
Current tax liabilities (Note 4)	564,195	3	409,863	2	209,616	1
Lease liabilities - current (Notes 13 and 28)	72,810	-	80,452	-	101,349	1
Current portion of long-term borrowings (Notes 16 and 30)	97,860	1	97,860	1	146,790	1
Other current liabilities (Note 18)	2,180	-	2,096	-	3,002	-
Total current liabilities	6,566,511	36	6,626,224	38	5,982,667	37
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 16 and 30)	587,160	3	636,090	4	685,020	4
Deferred tax liabilities (Note 4)	89,051	-	45,743	-	30,563	-
Lease liabilities - non-current (Notes 13 and 28)	126,288	1	82,417	1	127,829	1
Other non-current liabilities (Note 18)	1,869	-	1,848	-	1,899	-
Total non-current liabilities	804,368	4	766,098	5	845,311	5
Total liabilities	7,370,879	40	7,392,322	43	6,827,978	42
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 20)
Share capital
Ordinary shares	877,156	5	877,206	5	877,306	5
Capital surplus	1,572,412	9	1,580,612	9	1,772,473	11
Retained earnings
Legal reserve	2,341,482	12	2,341,482	13	1,979,226	12
Special reserve	349,767	2	349,767	2	200,346	1
Unappropriated earnings	5,647,395	31	4,796,274	28	4,931,507	31
Total retained earnings	8,338,644	45	7,487,523	43	7,111,079	44
Other equity (Notes 20 and 25)	174,648	1	(16,189)	-	(294,655)	(2)
Total equity	10,962,860	60	9,929,152	57	9,466,203	58
TOTAL	$ 18,333,739	100	$ 17,321,474	100	$ 16,294,181	100

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

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended March 31
	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE
Sales (Notes 21 and 29)	$ 4,994,662	100	$ 4,598,698	100
OPERATING COSTS
Cost of goods sold (Notes 10, 22 and 29)	(3,516,708)	(71)	(3,170,859)	(69)
GROSS PROFIT	1,477,954	29	1,427,839	31
OPERATING EXPENSES (Note 22)
Selling and marketing expenses	(77,178)	(2)	(90,279)	(2)
General and administrative expenses	(125,050)	(2)	(120,882)	(2)
Research and development expenses	(219,851)	(4)	(227,717)	(5)
Expected credit loss reversed (Note 9)	10,384	-	1,857	-
Total operating expenses	(411,695)	(8)	(437,021)	(9)
PROFIT FROM OPERATIONS	1,066,259	21	990,818	22
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 22)	55,670	1	51,774	1
Other income (Note 22)	3,504	-	3,313	-
Other gains and losses (Note 22)	(59,618)	(1)	(153,294)	(3)
Finance costs (Note 22)	(14,084)	-	(15,936)	(1)
Total non-operating income and expenses	(14,528)	-	(114,143)	(3)
PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS	1,051,731	21	876,675	19
INCOME TAX EXPENSE (Notes 4 and 23)	(201,015)	(4)	(162,807)	(3)
NET PROFIT FOR THE PERIOD	850,716	17	713,868	16
				(Continued)

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended March 31
	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of the financial statements of foreign operations (Note 20)	$ 187,118	4	$ 415,167	9
Income tax relating to items that may be reclassified subsequently to profit (Notes 20 and 23)	(37,423)	(1)	(83,034)	(2)
Other comprehensive income for the period, net of income tax	149,695	3	332,133	7
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$ 1,000,411	20	$ 1,046,001	23
EARNINGS PER SHARE (Note 24)
Basic	$ 9.73		$ 8.17
Diluted	$ 9.69		$ 8.14

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

(Concluded)

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Company
	Ordinary Shares	Capital Surplus	Retained Earnings			Other Equity		Total Equity
			Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Others
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
Share-based payment transactions (Notes 20, 22 and 25)	-	-	-	-	-	-	62,399	62,399
Net profit for the three months ended March 31, 2024	-	-	-	-	713,868	-	-	713,868
Other comprehensive income for the three months ended March 31, 2024, net of income tax (Note 20)	-	-	-	-	-	332,133	-	332,133
Total comprehensive income for the three months ended March 31, 2024	-	-	-	-	713,868	332,133	-	1,046,001
BALANCE AT MARCH 31, 2024	$ 877,306	$ 1,772,473	$ 1,979,226	$ 200,346	$ 4,931,507	$ (17,634)	$ (277,021)	$ 9,466,203
BALANCE AT JANUARY 1, 2025	$ 877,206	$ 1,580,612	$ 2,341,482	$ 349,767	$ 4,796,274	$ 95,582	$ (111,771)	$ 9,929,152
Share-based payment transactions (Notes 20, 22 and 25)	(50)	(8,200)	-	-	405	-	41,142	33,297
Net profit for the three months ended March 31, 2025	-	-	-	-	850,716	-	-	850,716
Other comprehensive income for the three months ended March 31, 2025, net of income tax (Note 20)	-	-	-	-	-	149,695	-	149,695
Total comprehensive income for the three months ended March 31, 2025	-	-	-	-	850,716	149,695	-	1,000,411
BALANCE AT MARCH 31, 2025	$ 877,156	$ 1,572,412	$ 2,341,482	$ 349,767	$ 5,647,395	$ 245,277	$ (70,629)	$ 10,962,860

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

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 1,051,731	$ 876,675
Adjustments for:
Depreciation expenses	83,569	83,745
Amortization expenses	2,475	4,125
Expected credit loss reversed	(10,384)	(1,857)
Net gain on financial assets at fair value through profit or loss	(10,560)	(134)
Finance costs	14,084	15,936
Interest income	(55,670)	(51,774)
Share-based compensation	33,297	62,399
Loss on disposal of property, plant and equipment	129	158
Write-downs of inventories	4,040	4,511
Net gain on foreign currency exchange	(48,451)	(43,751)
Changes in operating assets and liabilities
Notes receivable	34,031	14,843
Trade receivables	342,722	321,096
Trade receivables - related parties	25,930	54,566
Other receivables	(8,168)	945
Inventories	62,672	(377,309)
Prepayments	68,979	11,705
Contract liabilities	(87,479)	31,903
Notes payable	(6)	17
Trade payables	26,978	462,817
Trade payables - related parties	(5,608)	18,616
Other payables	(137,192)	(108,601)
Other current liabilities	84	972
Cash generated from operations	1,387,203	1,381,603
Interest received	58,095	61,228
Interest paid	(14,084)	(15,936)
Income tax paid	(80,409)	(138,722)
Net cash generated from operating activities	1,350,805	1,288,173
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortized cost	(3,278)	-
Acquisition of property, plant and equipment	(10,103)	(6,534)
Proceeds from the disposal of property, plant and equipment	392	106
(Increase) decrease in refundable deposits	(4,202)	948
Payments for intangible assets	(975)	(1,290)
Increase in prepayments for equipment	(1,876)	(3,856)
Net cash used in investing activities	(20,042)	(10,626)
		(Continued)

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2025	2024
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term borrowing	$ (48,930)	$ -
Repayment of the principal portion of lease liabilities	(22,436)	(21,806)
Refund of guarantee deposits received	-	(133)
Cash used in financing activities	(71,366)	(21,939)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	226,731	338,387
NET INCREASE IN CASH AND CASH EQUIVALENTS	1,486,128	1,593,995
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	6,556,415	5,044,707
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$ 8,042,543	$ 6,638,702

The accompanying notes are an integral part of the consolidated financial statements. (Concluded)

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 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 consolidated financial statements are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the board of directors on May 13, 2025.

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 IFRSs endorsed and issued into effect by the FSC did not have a material impact on the Group'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 classification of financial assets	January 1, 2026 (Note)

Note: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2026. It is permitted to apply these amendments for an earlier period beginning on January 1, 2025.

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)
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
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	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
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 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027

Note: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

IFRS 18 "Presentation and Disclosures in Financial Statements"

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discounted operations categories.
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 Group 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 Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group 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 Group as a whole, the Group 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.

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

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For the convenience of readers, the accompanying consolidated 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

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated 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.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective date of acquisition up to the effective date of disposal, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

See Note 11 and Tables 6 and 7 for more information on subsidiaries (including the percentages of ownership and main businesses).

d. Other material accounting policies

Except for the explanations below, other explanations of significant accounting policies are described in the significant accounting policies section of the consolidated financial statement for the year ended December 31, 2024.

Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

11 -

12 -

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’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.

Key Sources of Estimation Uncertainty

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

6. CASH AND CASH EQUIVALENTS

	March 31, 2025	December 31, 2024	March 31, 2024
Cash on hand	$ 570	$ 964	$ 1,137
Demand deposits	912,337	509,075	1,536,118
Cash equivalents (investments with original maturities of 3 months or less)
Time deposits	5,767,644	4,992,926	5,101,447
Notice deposits	1,361,992	1,053,450	-
	$ 8,042,543	$ 6,556,415	$ 6,638,702

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

	March 31, 2025	December 31, 2024	March 31, 2024
Demand deposits	0.001%-1.800%	0.001%-4.260%	0.001%-1.450%
Time deposits	1.250%-4.450%	0.800%-4.890%	1.250%-5.540%
Notice deposits	1.450%	1.450%	-

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	March 31, 2025	December 31, 2024	March 31, 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	$ 71,977	$ 61,417	$ 42,496

13 -

8. FINANCIAL ASSETS AT AMORTIZED COST

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Domestic investments
Restricted demand deposit	$ 3,278	$ -	$ -

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

	March 31, 2025	December 31, 2024	March 31, 2024
Notes receivable
At amortized cost
Gross carrying amount	$ 70,714	$ 104,745	$ 42,674
Less: Allowance for impairment loss	-	-	-
	$ 70,714	$ 104,745	$ 42,674
Trade receivables
At amortized cost
Gross carrying amount	$ 2,763,589	$ 3,114,520	$ 2,422,136
Less: Allowance for impairment loss	(19,091)	(29,468)	(21,313)
	2,744,498	3,085,052	2,400,823
At FVTOCI	75,550	84,489	49,509
	$ 2,820,048	$ 3,169,541	$ 2,450,332
Trade receivables from related parties
At amortized cost
Gross carrying amount	$ 95,409	$ 126,304	$ 93,923
Less: Allowance for impairment loss	-	-	-
	95,409	126,304	93,923
At FVTOCI	54,461	49,229	13,204
	$ 149,870	$ 175,533	$ 107,127
Other receivables
Tax refund receivables	$ 31,052	$ 23,931	$ 18,989
Interest receivables	18,997	21,422	3,640
Others	23,673	22,626	25,037
	$ 73,722	$ 67,979	$ 47,666

a. Notes receivable

At amortized cost

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

The Group 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 March 31, 2025, December 31, 2024 and March 31, 2024, the Group evaluated that no allowance for impairment loss was needed for notes receivable.

As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group did not hold any collateral for the balance of notes receivable.

The following table details the aging analysis of notes receivable:

	March 31, 2025	December 31, 2024	March 31, 2024
1 to 60 days	$ 26,309	$ 84,967	$ 32,909
61 to 90 days	13,251	19,738	7,646
91 to 120 days	31,154	40	2,119
Over 121 days	-	-	-
	$ 70,714	$ 104,745	$ 42,674

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 Group 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 Group 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 Group's credit risk was significantly reduced.

The Group 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 Group 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 Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

14 -

Since the Group purchased insurance individually and the credit rating is evaluated by the insurance company, no impairment loss was needed for those trade receivables. As of March 31, 2025, December 31, 2024 and March 31, 2024 the carrying amount of the trade receivables covered by insurance was $2,038,391 thousand, $2,330,651 thousand and $1,691,919 thousand, respectively.

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

March 31, 2025

	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	0.44%	3.29%	49.07%	100%	100%	100%
Gross carrying amount	$ 709,618	$ 96,768	$ 2,859	$ 884	$ 3	$ 10,475	$ 820,607
Loss allowance (Lifetime ECLs)	(3,143)	(3,183)	(1,403)	(884)	(3)	(10,475)	(19,091)
Amortized cost	$ 706,475	$ 93,585	$ 1,456	$ -	$ -	$ -	$ 801,516

December 31, 2024

	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	0.51%	4.04%	46.21%	100%	100%	100%
Gross carrying amount	$ 802,163	$ 73,185	$ 23,103	$ 1,156	$ 31	$ 10,535	$ 910,173
Loss allowance (Lifetime ECLs)	(4,114)	(2,955)	(10,677)	(1,156)	(31)	(10,535)	(29,468)
Amortized cost	$ 798,049	$ 70,230	$ 12,426	$ -	$ -	$ -	$ 880,705

March 31, 2024

	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%	3.77%	44.03%	100%	100%	100%
Gross carrying amount	$ 721,215	$ 87,090	$ 1,440	$ 1,259	$ 7,985	$ 5,151	$ 824,140
Loss allowance (Lifetime ECLs)	(3,003)	(3,281)	(634)	(1,259)	(7,985)	(5,151)	(21,313)
Amortized cost	$ 718,212	$ 83,809	$ 806	$ -	$ -	$ -	$ 802,827

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

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ 29,468	$ 23,068
Less: Net remeasurement of loss allowance reversed	(10,384)	(1,857)
Foreign exchange losses	7	102
Balance at March 31	$ 19,091	$ 21,313

2) At FVTOCI

For trade receivables from a specific customer, the Group 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 collecting contractual cash flows and selling financial assets.

Since the Group purchased insurance individually and the credit rating is evaluated by the insurance company, no impairment loss was needed for the trade receivables at FVTOCI. As of March 31, 2025, December 31, 2024 and March 31, 2024 the carrying amount of the trade receivables was $22,457 thousand, $182 thousand and $6,380 thousand, respectively.

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

March 31, 2025

	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	$ 107,554	$ -	$ -	$ -	$ -	$ -	$ 107,554
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-	-
Amortized cost	$ 107,554	$ -	$ -	$ -	$ -	$ -	$ 107,554
December 31, 2024
	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	$ 133,536	$ -	$ -	$ -	$ -	$ -	$ 133,536
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-	-
Amortized cost	$ 133,536	$ -	$ -	$ -	$ -	$ -	$ 133,536
March 31, 2024
	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	$ 56,333	$ -	$ -	$ -	$ -	$ -	$ 56,333
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-	-
Amortized cost	$ 56,333	$ -	$ -	$ -	$ -	$ -	$ 56,333

c. Other receivables

The Group's other receivables included interest receivables and refundable tax. The Group follows the policy of trading only with customers who maintains good credit standing. The Group 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 March 31, 2025, December 31, 2024 and March 31, 2024, the Group evaluated no allowance for impairment loss was needed for other receivables.

INVENTORIES

	March 31, 2025	December 31, 2024	March 31, 2024
Raw materials	$ 650,382	$ 674,421	$ 795,702
Supplies	3,566	3,517	3,476
Semi-finished goods	136,406	153,608	138,677
Work in progress	517,914	384,851	462,684
Finished goods	717,013	876,391	382,071
	$ 2,025,281	$ 2,092,788	$ 1,782,610

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

	For the Three Months Ended March 31
	2025	2024
Cost of inventories sold	$ 3,512,668	$ 3,166,348
Inventory write-downs	4,040	4,511
	$ 3,516,708	$ 3,170,859

11. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

Investor	Investee	Nature of Activities	Proportion of Ownership			Remark
			March 31, 2025	December 31, 2024	March 31, 2024
Voltronic Power	Voltronic International Corp.	Investment activities	100.00%	100.00%	100.00%	a
Technology Corp.	Voltronic Power Technology (Vietnam) Company Limited	Design, manufacture and sale of UPS and inverters	100.00%	100.00%	100.00%	b
	Inversolenergy, Tech. Inc.	Marketing, technical support and after-sales service of UPS and inverters	100.00%	100.00%	-	a and e
Voltronic International Corp.	Voltronic International H.K. Corp. Limited	Investment activities	100.00%	100.00%	100.00%	a
	Potentia Technology Inc. Limited	Sale of uninterruptible power systems (UPS) and inverters	100.00%	100.00%	100.00%	a
Voltronic International H.K. Corp. Limited	Voltronic Power Technology (Shen Zhen) Corp.	Design, manufacture and sale of UPS and inverters	100.00%	100.00%	100.00%	c
	Orchid Power (Shen Zhen) Manufacturing Company	Design, manufacture and sale of UPS and inverters	100.00%	100.00%	100.00%	c
	Zhongshan Voltronic Power Electronics Limited	Design, manufacture and sale of UPS and inverters	27.03%	27.03%	27.03%	c and d
Orchid Power (Shen Zhen) Manufacturing Company	Zhongshan Voltronic Power Electronics Limited	Design, manufacture and sale of UPS and inverters	72.97%	72.97%	72.97%	c and d
Zhongshan Voltronic Power Electronics Limited	Zhongshan Voltronic Precision Inc.	Design, manufacture and sale of UPS and inverters related components	100.00%	100.00%	100.00%	c

a. The main operating risk is the foreign exchange rate risks.
b. The main operating risks are foreign exchange rate risks and government decrees.
c. The main operating risks are foreign exchange rate risks, government decrees and political risk arising from the uncertainty in relationship between China and Taiwan.
d. In February 2024, Orchid Power (Shen Zhen) Manufacturing Company subscribed to an increase in capital of Zhongshan Voltronic Power Electronics Limited with 450 million RMB. Following the capital increase, Orchid Power (Shen Zhen) Manufacturing Company holds a 72.97% equity stake in Zhongshan Voltronic Power Electronics Limited, while the equity stake of Voltronic International H.K. Corp. Limited in Zhongshan Voltronic Power Electronics Limited decreased from 100% to 27.03%.

e. Approved by the board of directors on May 9, 2024, Voltronic Power Technology Corp. established Inversolenergy Tech, Inc. in the United States in response to operational needs. Voltronic Power Technology Corp. invested a capital of US$500 thousand in May 2024, holding 100% ownership stake in the subsidiary.

12. PROPERTY, PLANT AND EQUIPMENT

Assets Used by the Group

	Freehold Land	Buildings	Machinery and Equipment	Transportation	Office Equipment	Leasehold Improvements	Other Equipment	Property under Construction	Total
Cost
Balance at January 1, 2025	$ 1,307,921	$ 2,687,784	$ 991,305	$ 20,079	$ 104,266	$ 29,432	$ 450,439	$ -	$ 5,591,226
Additions	-	-	1,606	24	422	-	2,671	-	4,723
Disposals	-	(248)	(609)	(163)	(314)	(8,608)	(2,078)	-	(12,020)
Effect of foreign currency exchange differences	-	20,548	11,210	248	1,320	344	5,270	-	38,940
Balance at March 31, 2025	$ 1,307,921	$ 2,708,084	$ 1,003,512	$ 20,188	$ 105,694	$ 21,168	$ 456,302	$ -	$ 5,622,869
Accumulated depreciation and impairment
Balance at January 1, 2025	$ -	$ 279,198	$ 539,768	$ 11,651	$ 68,524	$ 25,229	$ 276,691	$ -	$ 1,201,061
Depreciation expense	-	18,359	21,461	599	2,838	1,393	14,610	-	59,260
Disposals	-	(248)	(279)	(141)	(274)	(8,608)	(1,949)	-	(11,499)
Effect of foreign currency exchange differences	-	2,163	5,893	150	857	296	3,174	-	12,533
Balance at March 31, 2025	$ -	$ 299,472	$ 566,843	$ 12,259	$ 71,945	$ 18,310	$ 292,526	$ -	$ 1,261,355
Carrying amounts at December 31, 2024 and January 1, 2025	$ 1,307,921	$ 2,408,586	$ 451,537	$ 8,428	$ 35,742	$ 4,203	$ 173,748	$ -	$ 4,590,165
Carrying amounts at March 31, 2025	$ 1,307,921	$ 2,408,612	$ 436,669	$ 7,929	$ 33,749	$ 2,858	$ 163,776	$ -	$ 4,361,514
Cost
Balance at January 1, 2024	$ 1,307,921	$ 2,572,065	$ 906,322	$ 18,045	$ 95,411	$ 32,901	$ 405,372	$ 51,112	$ 5,389,149
Additions	-	-	5,588	-	483	-	2,940	-	9,011
Disposals	-	(413)	(1,339)	-	(459)	(5,052)	(805)	-	(8,066)
Reclassified (Note)	-	-	700	-	-	-	-	-	700
Effect of foreign currency exchange differences	-	55,250	28,347	652	3,354	1,241	13,107	-	101,951
Balance at March 31, 2024	$ 1,307,921	$ 2,626,902	$ 939,618	$ 18,697	$ 98,789	$ 29,090	$ 420,616	$ 51,112	$ 5,492,745
Accumulated depreciation and impairment
Balance at January 1, 2024	$ -	$ 216,254	$ 442,037	$ 9,092	$ 55,962	$ 23,156	$ 223,041	$ -	$ 969,542
Depreciation expense	-	18,207	21,068	573	2,720	1,846	14,951	-	59,365
Disposals	-	(413)	(1,222)	-	(406)	(5,052)	(709)	-	(7,802)
Effect of foreign currency exchange differences	-	4,752	12,960	329	1,895	878	6,962	-	27,776
Balance at March 31, 2024	$ -	$ 238,800	$ 474,843	$ 9,994	$ 60,171	$ 20,828	$ 244,245	$ -	$ 1,048,881
Carrying amounts at December 31, 2023 and January 1, 2024	$ 1,307,921	$ 2,355,811	$ 464,285	$ 8,953	$ 39,449	$ 9,745	$ 182,331	$ 51,112	$ 4,419,607
Carrying amounts at March 31, 2024	$ 1,307,921	$ 2,388,102	$ 464,775	$ 8,703	$ 38,618	$ 8,262	$ 176,371	$ 51,112	$ 4,443,864

Note: Reclassified from prepayments for equipment to property, plant and equipment $700 thousand.

For the three months ended March 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 their estimated useful lives as follows:

Buildings

Main buildings: 50 years
Draining and air-conditioning units: 5-15 years
Machinery and equipment: 2-20 years
Transportation: 3-10 years
Office equipment: 2-10 years
Leasehold improvements: 3-5 years
Other equipment: 2-10 years

Refer to Note 30 for the carrying amount of property, plant and equipment pledged by the Group to secure borrowings.

The amounts of commitment liability for acquisition of property, plant and equipment were set out in Note 31.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

	March 31, 2025	December 31, 2024	March 31, 2024
Carrying amount
Land	$ 149,914	$ 148,719	$ 149,636
Buildings	187,335	152,051	209,679
Transportation equipment	452	646	1,228
	$ 337,701	$ 301,416	$ 360,543
		For the Three Months Ended March 31
		2025	2024
Additions to right-of-use assets		$ 56,432	$ 3,315
Depreciation charge for right-of-use assets
Land		$ 897	$ 871
Buildings		23,218	23,315
Transportation equipment		194	194
		$ 24,309	$ 24,380

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the three months ended March 31, 2025 and 2024.

b. Lease liabilities

	March 31, 2025	December 31, 2024	March 31, 2024
Carrying amount
Current	$ 72,810	$ 80,452	$ 101,349
Non-current	$ 126,288	$ 82,417	$ 127,829

Range of discount rate for lease liabilities was as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Buildings	4.75%-6.00%	4.75%-6.00%	4.75%-6.00%
Transportation equipment	5.58%	5.58%	5.58%

c. Material lease activities and terms (the Group is the lessee)

The Group leases land for use in operations with a lease term of 50 years. The Group does not have bargain purchase options to acquire the leased land at the end of the lease term.

The Group also leases buildings and vehicles used as offices, plants, dormitories and operations with lease terms of 2 to 8 years. The Group does not have bargain purchase options to acquire buildings at the end of the lease terms.

d. Other lease information

	For the Three Months Ended March 31
	2025	2024
Expenses relating to short-term leases	$ 2,005	$ 1,111
Expenses relating to low-value asset leases	$ 276	$ 299
Total cash outflow for leases	$ (26,752)	$ (26,110)

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

14. OTHER INTANGIBLE ASSETS

	Computer Software
Cost
Balance at January 1, 2025	$ 52,227
Additions	975
Disposals	(11,701)
Effect of foreign currency exchange differences	188
Balance at March 31, 2025	$ 41,689
Accumulated amortization
Balance at January 1, 2025	$ 40,432
Amortization expense	2,475
Disposals	(11,701)
Effect of foreign currency exchange differences	142
Balance at March 31, 2025	$ 31,348
Carrying amount at December 31, 2024 and January 1, 2025	$ 11,795
Carrying amount at March 31, 2025	$ 10,341
	(Continued)

Computer Software

Cost

Balance at January 1, 2024 $ 58,691
Additions 1,290
Disposals (8,788)
Effect of foreign currency exchange differences 911
Balance at March 31, 2024 $ 52,104

Accumulated amortization

Balance at January 1, 2024 $ 39,882
Amortization expense 4,125
Disposals (8,788)
Effect of foreign currency exchange differences 698
Balance at March 31, 2024 $ 35,917
Carrying amount at March 31, 2024 $ 16,187
(Concluded)

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 Three Months Ended March 31
	2025	2024
An analysis of amortization by function
Operating costs	$ 150	$ 378
Selling and marketing expenses	141	240
General and administrative expenses	1,020	1,516
Research and development expenses	1,164	1,991
	$ 2,475	$ 4,125

15. OTHER ASSETS

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Prepayments for purchases	$ 5,632	$ 3,148	$ 14,362
Overpaid sales tax	160,899	233,702	148,566
Other prepayments	20,921	19,581	19,174
	$ 187,452	$ 256,431	$ 182,102
			(Continued)

22 -

	March 31, 2025	December 31, 2024	March 31, 2024
Non-current
Refundable deposits	$ 32,816	$ 28,254	$ 30,720
Prepayments for equipment	12,085	10,209	39,186
	$ 44,901	$ 38,463	$ 69,906
			(Concluded)

16. BORROWINGS

Long-term borrowings/current portion of long-term borrowings:

	March 31, 2025	December 31, 2024	March 31, 2024
Secured borrowings (Note 30)
Bank loans	$ 685,020	$ 733,950	$ 831,810
Less: Current portion	(97,860)	(97,860)	(146,790)
	$ 587,160	$ 636,090	$ 685,020

The weighted average effective interest rate on bank loans listed above was 1.9970%, 1.9960% and 1.8139% as of March 31, 2025, December 31, 2024 and March 31, 2024.

In March 2022, the Group 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.

17. NOTES PAYABLE AND TRADE PAYABLES

	March 31, 2025	December 31, 2024	March 31, 2024
Notes payable
Operating	$ -	$ 6	$ 61
Trade payables
Operating	$ 4,369,859	$ 4,342,762	$ 4,145,800

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

23 -

18. OTHER LIABILITIES

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Other payables
Payables for salaries and bonuses	$ 397,310	$ 548,615	$ 391,622
Payables for compensation of employee	369,735	357,734	265,196
Payables for commission	60,514	66,908	67,425
Payables for sales tax	27,754	36,314	54,743
Payables for purchases of equipment (include building)	24,945	30,325	31,083
Payables for insurance	42,202	39,122	41,563
Payables for remuneration of directors and supervisors	18,000	14,400	18,000
Payables for freight	12,314	14,508	13,816
Others	109,153	94,492	90,084
	$ 1,061,927	$ 1,202,418	$ 973,532
Other liabilities
Receipts under custody	$ 2,156	$ 2,088	$ 3,002
Temporary receipts	24	8	-
	$ 2,180	$ 2,096	$ 3,002
Non-current
Other liabilities
Guarantee deposits	$ 1,869	$ 1,848	$ 1,899

19. RETIREMENT BENEFIT PLANS

Defined Contribution Plans

The Company has 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. The employees of the Group in China and Vietnam are members of state-managed retirement benefit plans operated by their local governments. The subsidiaries in China are required to contribute amounts calculated at a certain percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

EQUITY

a. Share capital

Ordinary shares

	March 31, 2025	December 31, 2024	March 31, 2024
Shares authorized (in thousands of shares)	100,000	100,000	100,000
Shares authorized	$ 1,000,000	$ 1,000,000	$ 1,000,000
Shares issued and fully paid (in thousands of shares)	87,715	87,720	87,730
Shares issued and fully paid	$ 877,156	$ 877,206	$ 877,306

Fully paid ordinary shares, which have a par value of NT$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, 2025, the board of directors resolved to withdraw restricted shares. The Company withdraw $50 thousand, 5 thousand shares, with a par value of $10, on March 10, 2025 as the effective date of reduction, and where the approval of the Ministry of Economic Affairs (MOEA) was obtained on April 7, 2025.

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	87,720	$ 877,206
Retirement of recognized employee restricted shares (Note 25)	(5)	(50)
Balance at March 31, 2025	87,715	$ 877,156
Balance at January 1, 2024	87,730	$ 877,306
Balance at March 31, 2024	87,730	$ 877,306

b. Capital surplus

	March 31, 2025	December 31, 2024	March 31, 2024
May be used to offset a deficit, distributed as cash, or transferred to share capital (Note)
Premium from issuance ordinary shares	$ 77,827	$ 77,827	$ 253,288
Premium from employee restricted shares	1,016,197	1,016,197	854,001
May not be used for any purpose
Employee restricted shares	478,388	486,588	665,184
	$ 1,572,412	$ 1,580,612	$ 1,772,473

24 -

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 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 was as follows:

	Premium from Ordinary Shares	Premium from Employee Restricted Shares	Employee Restricted Shares
Balance at January 1, 2025	$ 77,827	$ 1,016,197	$ 486,588
Retired employee restricted shares (Note)	-	-	(8,200)
Balance at March 31, 2025	$ 77,827	$ 1,016,197	$ 478,388
Balance at January 1, 2024	$ 253,288	$ 854,001	$ 665,184
Balance at March 31, 2024	$ 253,288	$ 854,001	$ 665,184

Note: Reversal of compensation cost of the restricted shares amounting to $8,250 thousand, net of retired share capital of $50 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 22-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 the case where 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 deficit. 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.

25 -

The appropriations of earnings for 2024 and 2023 were proposed by the board of directors on March 6, 2025 and approved in the shareholders' meetings on June 14, 2024, respectively, were as follows:

	For the Year Ended December 31
	2024	2023
Legal reserve	$ 420,432	$ 362,256
Recognition of special reserve (reversed)	$ (349,767)	$ 149,421
Cash dividends	$ 3,596,543	$ 3,114,435
Cash dividends per share (NT$)	$ 41.0	$ 35.5

The appropriation of earnings for 2024 is to be resolved by the shareholders in the shareholders' meeting on May 28, 2025.

An issuance of cash from capital surplus amounting $175,441 thousand was proposed by the board of directors and to be resolved by the shareholders in the shareholders' meeting on May 28, 2025.

The earnings of the Company and its subsidiaries are appropriated in accordance with their respective Articles of Incorporation, and are not subject to any contractual restrictions.

d. Special reserve

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ 349,767	$ 200,346
Balance at March 31	$ 349,767	$ 200,346

e. Other equity items

Exchange differences on translating the financial statements of foreign operations

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ 95,582	$ (349,767)
Recognized for the period
Exchange differences on translating foreign operations	187,118	415,167
Income tax related to exchange differences arising on translating to the presentation currency	(37,423)	(83,034)
Other comprehensive income from the period	149,695	332,133
Balance at March 31	$ 245,277	$ (17,634)

Unearned employee benefits

In the meetings of shareholders on June 17, 2022, the shareholders approved a restricted shares plan for employees (refer to Note 25).

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ (111,771)	$ (339,420)
Share-based payment expenses recognized	32,892	62,399
Adjustment for retired restricted employee shares (Note)	8,250	-
Balance at March 31	$ (70,629)	$ (277,021)

Note: Deducted from compensation cost of restricted shares.

21. REVENUE

	For the Three Months Ended March 31
	2025	2024
Revenue from contracts with customers
Revenue from sale of goods	$ 4,994,662	$ 4,598,698
	March 31, 2025	December 31, 2024
---	---	---
Contract balances
Notes receivable (Note 9)	$ 70,714	$ 104,745
Trade receivables (Notes 9 and 29)	$ 2,969,918	$ 3,345,074
Contract liabilities - current Sale of goods	$ 395,966	$ 483,445

22. NET PROFIT (LOSS) FROM OPERATIONS

a. Interest income

	For the Three Months Ended March 31
	2025	2024
Bank deposits	$ 55,670	$ 51,774

b. Other income

	For the Three Months Ended March 31
	2025	2024
Government grants	$ 2,223	$ 877
Others	1,281	2,436
	$ 3,504	$ 3,313

c. Other gains and (losses)

	For the Three Months Ended March 31
	2025	2024
Loss on disposal of property, plant and equipment	$ (129)	$ (158)
Net foreign exchange losses	(68,572)	(153,231)
Net gain on financial assets at fair value through profit or loss	10,560	134
Others	(1,477)	(39)
	$ (59,618)	$ (153,294)

d. Finance costs

	For the Three Months Ended March 31
	2025	2024
Interest on bank loans	$ 3,613	$ 3,761
Interest on lease liabilities	2,035	2,894
Other interest expense	8,436	9,281
	$ 14,084	$ 15,936

e. Depreciation and amortization

	For the Three Months Ended March 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 56,813	$ 57,898
Operating expenses	26,756	25,847
	$ 83,569	$ 83,745
An analysis of amortization by function
Operating costs	$ 150	$ 378
Operating expenses	2,325	3,747
	$ 2,475	$ 4,125

f. Employee benefits expense

	For the Three Months Ended March 31
	2025	2024
Salary expenses (1)	$ 568,997	$ 539,548
Other employee benefits
Labor and health insurance	14,318	11,012
Other employee benefits	25,472	24,813
Equity-settled share-based payments (Note 25)	33,297	(2) 62,399
Post-employment benefits
Defined contribution plans	40,515	31,581
Total employee benefits expense	$ 682,599	$ 669,353
An analysis of employee benefits expense by function
Operating costs	$ 403,653	$ 384,085
Operating expenses	278,946	285,268
	$ 682,599	$ 669,353

1) The amount includes fee for dispatched temporary workers.

2) Share-based payment expense recognized of $32,892 thousand and accumulated dividends that no need to be returned payout from returned and retired restricted shares of $405 thousand are included in the three months ended March 31, 2025.

g. Employees compensation 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 expect to resolve 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 three months ended March 31, 2025 and 2024 are as follows:

Accrual rate

	For the Three Months Ended March 31
	2025	2024
Employees' compensation	3.88%	4.28%
Remuneration of directors	0.35%	0.44%

Amount

	For the Three Months Ended March 31
	2025	2024
Employees’ compensation	$ 40,000	$ 35,000
Remuneration of directors	$ 3,600	$ 3,600

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

The appropriations of employees' compensation and remuneration of directors for 2024 and 2023 that were resolved by the board of directors on March 6, 2025 and February 26, 2024, respectively, are as shown below:

	For the Three Months Ended March 31
	2025	2024
	Cash	Cash
Employees’ compensation	$ 210,000	$ 180,000
Remuneration of directors	14,400	14,400

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

Information on the employees' 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 Three Months Ended March 31
	2025	2024
Foreign exchange gains	$ 161,520	$ 245,400
Foreign exchange losses	(230,092)	(398,631)
Net losses	$ (68,572)	$ (153,231)

31 -

23. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Major components of income tax expense recognized in profit are as follows:

	For the Three Months Ended March 31
	2025	2024
Current tax
In respect of the current period	$ (234,204)	$ (176,178)
Adjustments for prior periods	(21)	-
Deferred tax
In respect of the current period	33,210	13,371
Income tax expense recognized in profit or loss	$ (201,015)	$ (162,807)

The applicable tax rate used by the entity in ROC for the years ended December 31, 2025 and 2024 was 20%. Voltronic Power Technology (Shen Zhen) Corp. and Zhongshan Voltronic Power Electronics Limited. used the tax rate of 15% in the three months ended March 31, 2025 and 2024 due to owning the high-tech enterprise certificate. Voltronic Power Technology (Vietnam) Company Limited is entitled to income tax incentives based on the Law on Foreign Investment in Vietnam and is entitled to income tax exemption for six years beginning from the first profit-earning year - full exemption in the first two years and half exemption in the next four years (10% tax rate) in the three months ended March 31, 2025 and 2024.

b. Income tax recognized in other comprehensive income

	For the Three Months Ended March 31
	2025	2024
Deferred tax
In respect of the current period
Translation of foreign operations	$ (37,423)	$ (83,034)

c. Income tax assessments

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

24. EARNINGS PER SHARE

	Unit: NT$ Per Share
	For the Three Months Ended March 31
	2025	2024
Basic earnings per share
Basic earnings per share	$ 9.73	$ 8.17
Diluted earnings per share
Diluted earnings per share	$ 9.69	$ 8.14

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

	For the Three Months Ended March 31
	2025	2024
Net profit for the year	$ 850,716	$ 713,868
Weighted average number of ordinary shares used in the computation of basic earnings per share (in thousands)	87,424	87,325
Effect of potentially dilutive ordinary shares
Employees’ compensation or bonuses issued to employees	111	94
Employee restricted shares	270	263
Weighted average number of ordinary shares used in the computation of diluted earnings per share (in thousands)	87,805	87,682

The Group may settle the compensation or bonuses paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares are 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.

25. 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, which was September 8, 2022, was 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	The Ratio of the Number of Shares to Be Awarded in the Current Year
Revenue	10% (inclusive) or more than the previous year	Higher than the Company’s average for the first three years	25%
Gross profit (GM %)	Increase by 1% or more from the previous year	Higher than the Company’s average for the first three years	25%
Operating profit (OPM $)	10% (inclusive) or more than the previous year	Higher than the Company’s average for the first three years	25%
Operating profit ratio (OPM %)	Increase by 1% or more from the previous year	Higher than the Company’s average for the first three years	25%

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 $32,297 thousand and $62,399 thousand were recognized within the vesting period for the three months ended March 31, 2025 and 2024.

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

	For the Three Months Ended March 31 (In Thousands)
	2025	2024
Balance at January 1	297	406
Forfeited (Note)	(5)	-
Balance at March 31	292	406

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

34 -

26. CASH FLOW INFORMATION

a. Non-cash transactions

In addition to those disclosed in other notes, the Group entered into the following non-cash investing activities which were not reflected in the consolidated statements of cash flows for the three months ended March 31, 2025 and 2024:

As of March 31, 2025, December 31, 2024 and March 31, 2024, the unsettled payments for purchases of property, plant and equipment were $24,945 thousand, $30,325 thousand and $31,083 thousand, respectively, and recorded as other payables - payables for purchases of equipment in the consolidated financial statements.

b. Changes in liabilities arising from financing activities

For the three months ended March 31, 2025

	Opening Balance	Cash Flows	Non-cash Changes			Closing Balance
			New Leases	Exchange Rate Impact	Exchange Rate Impact
Long-term borrowings (including current portion of long-term liabilities)	$ 733,950	$ (48,930)	$ -	$ -	$ -	$ 685,020
Guarantee deposits	1,848	-	-	-	21	1,869
Lease liabilities	162,869	(22,436)	56,432	(171)	2,404	199,098
	$ 898,667	$ (71,366)	$ 56,432	$ (171)	$ 2,425	$ 885,987

For the three months ended March 31, 2024

	Opening Balance	Cash Flows	Non-cash Changes		Closing Balance
			New Leases	Exchange Rate Impact
Long-term borrowings (including current portion of long-term liabilities)	$ 831,810	$ -	$ -	$ -	$ 831,810
Guarantee deposits	1,967	(133)	-	65	1,899
Lease liabilities	239,446	(21,806)	3,315	8,223	229,178
	$ 1,073,223	$ (21,939)	$ 3,315	$ 8,288	$ 1,062,887

27. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group 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 Group consists of equity of the Group (comprising issued capital, reserves, retained earnings and other equity).

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

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

35 -

28. FINANCIAL INSTRUMENTS

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

Management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated 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

March 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	$ -	$ -	$ 71,977	$ 71,977
Financial assets at FVTOCI
Investments in debt instruments
Factored trade receivables to bank
without recourses	$ -	$ -	$ 130,011	$ 130,011
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
March 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	$ -	$ -	$ 42,496	$ 42,496
Financial assets at FVTOCI
Investments in debt instruments
Factored trade receivables to bank
without recourses	$ -	$ -	$ 62,713	$ 62,713

There were no transfers between Levels 1 and 2 for the three months ended March 31, 2025 and 2024.

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

For the year ended March 31, 2025

	Financial Assets at FVTPL
	Fund Beneficiary Certificate	Financial Assets at FVTOCI
Financial Assets		Debt Instrument
Balance at January 1, 2025	$ 61,417	$ 133,718
Purchases	-	-
Recognized in profit or loss (including other gains and losses)	10,560	-
Sales	-	(3,707)
Balance at March 31, 2025	$ 71,977	$ 130,011

For the year ended March 31, 2024

	Financial Assets at FVTPL
	Fund Beneficiary Certificate	Financial Assets at FVTOCI
Financial Assets		Debt Instrument
Balance at January 1, 2024	$ 42,362	$ 85,148
Purchases	-	-
Recognized in profit or loss (including other gains and losses)	134	-
Sales	-	(22,435)
Balance at March 31, 2024	$ 42,496	$ 62,713

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

	March 31, 2025	December 31, 2024	March 31, 2024
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$ 71,977	$ 61,417	$ 42,496
Financial assets at amortized cost (1)	11,031,928	9,944,818	9,235,520
Financial assets at FVTOCI
Investments in debt instruments
Factored trade receivables to bank without recourses	130,011	133,718	62,713
Financial liabilities
Financial liabilities at amortized cost (2)	5,265,388	5,292,121	5,204,779

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, restricted demand deposits, 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 guarantee deposit received (included in other non-current liabilities) that are measured at amortized cost.

d. Financial risk management objectives and policies

The Group’s major financial instruments included trade receivables, trade payables, borrowings, and lease liabilities. The Group’s corporate treasury function provides services to the business, coordinates access to financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (primarily includes 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 Group’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 had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

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

The carrying amounts of the Group’s foreign currency-denominated monetary assets and monetary liabilities (including those eliminated on consolidation) are set out in Note 32.

Sensitivity analysis

The Group was mainly exposed to the fluctuations in the USD and the RMB.

The following table shows the Group's sensitivity to a $1\%$ increase and decrease in the functional currencies of the group entities 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 foreign currency. For a $1\%$ strengthening of the New Taiwan dollar against the relevant foreign currency, there would be an equal and opposite impact on pretax profit and the balances below would be negative.

	USD Impact
	For the Three Months Ended March 31
	2025	2024
Profit or loss	$ 82,359	$ 57,847
	RMB Impact
	For the Three Months Ended March 31
	2025	2024
Profit or loss	$ (111,654)	$ (94,329)

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

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

b) Interest rate risk

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

	March 31, 2025	December 31, 2024	March 31, 2024
Fair value interest rate risk
Financial assets	$ 7,129,636	$ 6,046,376	$ 5,101,447
Financial liabilities	199,098	162,869	229,178
Cash flow interest rate risk
Financial assets	915,615	509,075	1,536,118
Financial liabilities	685,020	733,950	831,810

39 -

Sensitivity analysis

The sensitivity analysis in the next paragraph was based on the exposure of the Group’s non-derivative instruments to interest rate risks at the end of the reporting period. A 100 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

Had interest rates been 100 basis points higher/lower and all other variables been held constant, the Group’s pretax profit for the three months ended March 31, 2025 and 2024 would have increased/decreased by $576 thousand and increased/decreased by $1,761 thousand, respectively, which was mainly attributable to the Group’s exposure to interest rate risks on its floating-rate bank deposits and bank borrowings.

The Group’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 Group. As of the end of the reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation pertain to financial assets recognized in the consolidated balance sheets.

The Group 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 Group 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 Group 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 Group’s credit risk was significantly reduced.

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

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’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 Group relies on bank borrowings as a significant source of liquidity. As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group had available unutilized 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 Group'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 Group 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.

March 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	$ 2,559,050	$ 2,019,449	$ 1,869	$ -
Lease liabilities	18,950	61,689	133,690	-
Variable interest rate liabilities	3,411	107,642	424,693	200,611
	$ 2,581,411	$ 2,188,780	$ 560,252	$ 200,611

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	$ 111,053	$ 424,693	$ 200,611	$ -	$ -	$ -

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	$ 2,656,135	$ 1,900,188	$ 1,848	$ -
Lease liabilities	24,898	61,311	85,257	-
Variable interest rate liabilities	52,538	58,975	426,565	250,736
	$ 2,733,571	$ 2,020,474	$ 513,670	$ 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	$ -	$ -	$ -

March 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	$ 2,545,716	$ 1,825,354	$ 1,899	$ -
Lease liabilities	24,980	84,886	133,767	-
Variable interest rate liabilities	52,473	108,078	428,744	302,905
	$ 2,623,169	$ 2,018,318	$ 564,410	$ 302,905

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	$ 160,551	$ 428,744	$ 302,905	$ -	$ -	$ -

b) Financing facilities

	March 31, 2025	December 31, 2024	March 31, 2024
Unsecured bank loan facilities
Amount used	$ -	$ -	$ -
Amount unused	3,832,000	3,827,850	3,819,900
	$ 3,832,000	$ 3,827,850	$ 3,819,900
Secured bank overdraft facilities:
Amount used	$ 685,020	$ 733,950	$ 831,810
Amount unused	-	-	-
	$ 685,020	$ 733,950	$ 831,810

e. Transfers of financial assets

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

March 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.	$ 479,114	$ -	$ -	$ 479,114	5.86-6.84
BNP Paribas S.A.	53,162	-	-	53,162	5.40-5.44
	$ 532,276	$ -	$ -	$ 532,276

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.	$ 527,759	$ -	$ -	$ 527,759	5.89-7.42
BNP Paribas S.A.	47,717	-	-	47,717	5.45-5.78
	$ 575,476	$ -	$ -	$ 575,476

March 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.	$ 399,985	$ -	$ -	$ 399,985	5.96-7.57
BNP Paribas S.A.	40,528	-	-	40,528	6.54-6.61
	$ 440,513	$ -	$ -	$ 440,513

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

29. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, had been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group 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 Group)
RIELLO UPS (SHANGHAI) Co., Ltd.	Essential related party (whose managing director is the key management personnel of the Group)
FSP Technology Inc.	Key management personnel
WUXI Zhonghan Technology Co., Ltd.	Essential related party (whose parent company is the key management personnel of the Group)

b. Sales of goods

Line Item	Related Party Category	For the Three Months Ended March 31
		2025	2024
Sales	Essential related parties	$ 178,879	$ 129,026
	Key management personnel	48,206	37,295
		$ 227,085	$ 166,321

The selling prices of the goods sold to the related parties in the table above are not comparable as these goods are not sold to other customers in the three months ended March 31, 2025 and 2024. Payment terms of goods sold to related parties are 60-150 days after at the end of the month, and 0-180 days for general customers.

c. Purchases of goods

	For the Three Months Ended March 31
Related Party Category	2025	2024
Essential related parties	$ 717	$ 25,910

The purchase prices of the goods purchased from the related parties in the table above are not comparable as these same goods are not purchased from other suppliers in the three months ended March 31, 2025 and 2024. Payment terms of goods purchased from related parties are 150 days after every month end close, and 30-90 days for general suppliers.

d. Trade receivables from related parties (excluding loans to related parties)

Line Item	Related Party Category	March 31, 2025	December 31, 2024	March 31, 2024
Trade receivables from related parties	Essential related parties	$ 65,665	$ 107,874	$ 21,743
	Key management personnel	84,205	67,659	85,384
		$ 149,870	$ 175,533	$ 107,127

The outstanding trade receivables from related parties were unsecured. For the three months ended March 31, 2025 and 2024, no impairment loss was recognized for trade receivables from related parties.

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

Line Item	Related Party Category	March 31, 2025	December 31, 2024	March 31, 2024
Trade payables to related parties	Essential related parties	$ 1,714	$ 7,322	$ 22,801

The outstanding trade payables from related parties are unsecured.

f. Remuneration of key management personnel

	For the Three Months Ended March 31
	2025	2024
Short-term employee benefits	$ 45,596	$ 40,174
Post-employee benefits	139	133
Share-based payments	6,230	9,564
	$ 51,965	$ 49,871

The remuneration of directors and key executives was determined by the remuneration committee on the basis of individual performance and market trends.

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings:

	Mach 31, 2025	December 31, 2024	March 31, 2024
Restricted demand deposits	$ 3,278	$ -	$ -
Land	587,160	587,160	587,160
Buildings	741,846	745,771	757,547
	$ 1,332,284	$ 1,332,931	$ 1,344,707

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of the end of the reporting period were as follows:

Unrecognized commitments are as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Acquisition of property, plant and equipment	$ 1,910	$ -	$ 5,600
Acquisition of service	$ 567	$ 578	$ 712

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the group entities 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:

March 31, 2025

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 241,246	33.2000 (USD:NTD)	$ 8,009,372
USD	21,552	7.1782 (USD:RMB)	715,532
USD	22,794	25,545 (USD:VND)	756,788
RMB	19	4.6251 (RMB:NTD)	87
RMB	2,518,303	0.1393 (RMB:USD)	11,646,546
			$ 21,128,325
			(Continued)

45 -

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial liabilities
Monetary items
USD	$ 21,879	33.2000 (USD:NTD)	$ 726,370
USD	8,171	7.1782 (USD:RMB)	271,293
USD	7,472	25,545 (USD:VND)	248,092
RMB	2,518,796	4.6251 (RMB:NTD)	11,649,685
RMB	2,413,602	0.1393 (RMB:USD)	11,162,330
			$ 24,057,770
			(Concluded)
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
USD	22,056	7.1884 (USD:RMB)	723,090
USD	22,383	25,400 (USD:VND)	733,812
RMB	236	4.5608 (RMB:NTD)	1,077
RMB	2,478,248	0.1391 (RMB:USD)	11,301,787
			$ 20,396,132
Financial liabilities
Monetary items
USD	20,847	32.7850 (USD:NTD)	$ 683,483
USD	8,016	7.1884 (USD:RMB)	262,788
USD	8,734	25,400 (USD:VND)	286,326
RMB	2,478,274	4.5608 (RMB:NTD)	11,302,912
RMB	2,373,547	0.1391 (RMB:USD)	10,824,310
			$ 23,359,819

March 31, 2024

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 186,990	31.9900 (USD:NTD)	$ 5,981,815
USD	16,958	7.0950 (USD:RMB)	542,464
USD	16,062	24,813 (USD:VND)	513,819
RMB	3,278	4.5088 (RMB:NTD)	14,779
RMB	2,130,637	0.1409 (RMB:USD)	9,603,614
			$ 16,656,491
Financial liabilities
Monetary items
USD	20,664	31.9900 (USD:NTD)	$ 661,055
USD	8,473	7.0950 (USD:RMB)	271,043
USD	10,045	24,813 (USD:VND)	321,323
RMB	2,130,637	4.5088 (RMB:NTD)	9,606,617
RMB	2,095,381	0.1409 (RMB:USD)	9,444,703
			$ 20,304,741

The Group is mainly exposed to the USD and the RMB. The following information was aggregated by the functional currencies of the group entities, and the exchange rates between the respective functional currencies and the presentation currency were disclosed.

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

For the Three Months Ended March 31
	2025		2024
Foreign Currency	Exchange Rate	Net Foreign Exchange Gains (Losses)	Exchange Rate	Net Foreign Exchange Gains (Losses)
NTD	1.0000 (NTD:NTD)	$ (72,775)	1.0000 (NTD:NTD)	$ (162,036)
USD	32.9017 (USD:NTD)	1,056	31.6200 (USD:NTD)	(264)
RMB	4.5863 (RMB:NTD)	(2,478)	4.4530 (RMB:NTD)	(306)
VND	0.0013 (VND:NTD)	5,625	0.0013 (VND:NTD)	9,375
		$ (68,572)		$ (153,231)

33. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:

1) Financing provided to others: Table 1
2) Endorsements/guarantees provided: None

3) 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

6) Intercompany relationships and significant intercompany transactions: Table 5

b. Information on investees: Table 6

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 7

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 8

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period

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 period 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

SEGMENT INFORMATION

Financial Information

The Group is a single industrial segment, mainly engaged in the manufacture and sale of uninterruptible power systems and inverters, and provides information to the chief operating decision makers for allocating resources and evaluating the performance of the segment, focusing on each type of products delivered or provided, so there is no need to disclose the operating information of the reportable segment.

TABLE 1

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars and Foreign Currencies)

No. (Note 1)	Lender	Borrower	Financial Statement Account (Note 6)	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	Collateral		Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
1	Orchid Power (Shen Zhen) Manufacturing Company	Zhongshan Voltronic Power Electronics Limited	Other receivables from related parties	Yes	$ 185,004 (RMB 40,000)	$ - (RMB -)	$ - (RMB -)	3.45	2	$ -	Operating capital financing funds	$ -	-	$ -	$ 5,886,226	$ 5,886,226
2	Voltronic Power Technology (Shen Zhen) Corp.	Zhongshan Voltronic Power Electronics Limited	Other receivables from related parties	Yes	693,765 (RMB 150,000)	693,765 (RMB 150,000)	693,765 (RMB 150,000)	3.35	2	-	Operating capital financing funds	-	-	-	5,275,909	5,275,909

Note 1: Number column as follows:
a. "0" for the issuer.
b. Invoices 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% 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.
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 highest balance for the period and ending balance present in NTS. Foreign currencies are converted into NTS; the exchange rate was, RMB1=NTS4.6251 as of March 31, 2025.

Note 6: The amount was eliminated upon consolidation.

TABLE 2

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars. Number of Shares)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company (Note)	Financial Statement Account	March 31, 2025				Note
				Number of Stock/Unit	Carrying Value	Percentage of Ownership (%)	Fair Value
Voltronic Power Technology	Hoshun Hing Intelligent Mobile Limited Partnership	-	Financial assets at FVTPL	-	$ 71,977	1.11	$ 71,977	-

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 7 and 8 for information regarding investment in subsidiaries.

TABLE 3

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Payable or Receivable		Note
			Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Voltronic Power Technology	RPS. SpA	Essential related parties	(Sales)	$ (177,718)	(4)	Net 150 days from the end of the month of when invoice is issued	No identical item	0-180 days	$ 63,974	3	-
	Potentia Technology Inc. Limited	Subsidiary	Purchase	3,108,195	94	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	(11,921,705)	(97)	Note 3
	Voltronic Power Technology (Shen Zhen) Corp.	Subsidiary	Purchase	132,201	4	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(245,159)	(2)	o
Potentia Technology Inc. Limited	Voltronic Power Technology	Parent company	(Sales)	(3,108,195)	(85)	Net 360 days from the end of the month of when invoice is issued	Note 2	Note 2	11,921,705	96	o
	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	(Sales)	(131,057)	(4)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	81,790	1	o
	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	Purchase	929,449	25	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	(4,345,143)	(35)	o
	Zhongshan Voltronic Power Electronics Limited	The same parent company	(Sales)	(207,039)	(6)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	142,861	1	o
	Zhongshan Voltronic Power Electronics Limited	The same parent company	Purchase	2,134,417	58	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	(6,947,382)	(55)	o
	Voltronic Power Technology (Vietnam) Company Limited	The same parent company	(Sales)	(128,682)	(4)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	245,439	2	o
	Voltronic Power Technology (Vietnam) Company Limited	The same parent company	Purchase	245,926	7	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(755,289)	(6)	o
Voltronic Power Technology (Shen Zhen) Corp.	Voltronic Power Technology	Parent company	(Sales)	(132,201)	(12)	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	245,159	5	o
	Potentia Technology Inc. Limited	The same parent company	(Sales)	(929,449)	(85)	Net 360 days from the end of the month of when invoice is issued	No identical item	30-90 days	4,345,143	93	o
	Potentia Technology Inc. Limited	The same parent company	Purchase	131,057	18	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(81,790)	(7)	o
	Zhongshan Voltronic Precision Inc.	The same parent company	Purchase	141,692	19	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(161,447)	(14)	o
Zhongshan Voltronic Power Electronics Limited	Potentia Technology Inc. Limited	The same parent company	(Sales)	(2,134,417)	(92)	Net 360 days from the end of the month of when invoice is issued	Note 2	Note 2	6,947,382	94	o
	Potentia Technology Inc. Limited	The same parent company	Purchase	207,039	11	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(142,861)	(6)	o
	Zhongshan Voltronic Precision Inc.	The same parent company	Purchase	233,387	13	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(400,953)	(16)	o
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	(Sales)	(112,432)	(5)	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	248,392	3	o
Zhongshan Voltronic Precision Inc.	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	(Sales)	(141,692)	(32)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	161,447	24	o
	Zhongshan Voltronic Power Electronics Limited	The same parent company	(Sales)	(233,387)	(53)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	400,953	60	o

(Continued)

Company Name	Related Party	Nature of Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Payable or Receivable		Note
			Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Voltronic Power Technology (Vietnam) Company Limited	Potentia Technology Inc. Limited	The same parent company	($ales)	$ (245,926)	(100)	Net 270 days from the end of the month of when invoice is issued	Note 2	Note 2	$ 755,289	100	Note 3
	Potentia Technology Inc. Limited	The same parent company	Purchase	128,682	93	Net 270 days from the end of the month of when invoice is issued	No identical item	30-90 days	(245,439)	(95)	o
Orchid Power (Shen Zhen) Manufacturing Company	Zhongshan Voltronic Power Electronics Limited	The same parent company	Purchase	112,432	28	Net 270 days from the end of the month of when invoice is issued	No identical item	0-60 days	(248,392)	(25)	o

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

Note 2: There is no sales to unrelated parties.

Note 3: The amounts have been eliminated in the consolidated financial statements.

(Concluded)

TABLE 4

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

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

MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance (Note 1)	Turnover Rate	Overdue		Amount Received in Subsequent Period (Note 2)	Allowance for Impairment Loss	Note
					Amount	Actions Taken
Trade receivables
Potentia Technology Inc. Limited	Voltronic Power Technology	Parent company	$ 11,921,705	1.06	$ -	-	$ 845,238	$ -	Note 3
	Zhongshan Voltronic Power Electronics Limited	The same parent company	142,861	5.44	-	-	66,007	-	n
	Voltronic Power Technology (Vietnam) Company Limited	The same parent company	245,439	1.95	-	-	51,537	-	n
Voltronic Power Technology (Shen Zhen) Corp.	Voltronic Power Technology	Parent company	245,159	2.20	-	-	50,346	-	n
	Potentia Technology Inc. Limited	The same parent company	4,345,143	0.86	-	-	190,759	-	n
Zhongshan Voltronic Power Electronics Limited	Potentia Technology Inc. Limited	The same parent company	6,947,382	1.24	-	-	673,262	-	n
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	248,392	1.76	-	-	37,615	-	n
	Voltronic Power Technology	Parent company	131,125	1.66	-	-	34,551	-	n
Zhongshan Voltronic Precision Inc.	Zhongshan Voltronic Power Electronics Limited	The same parent company	400,953	2.21	-	-	135,036	-	n
	Voltronic Power Technology (Shen Zhen) Corp.	The same parent company	161,447	4.17	-	-	-	-	n
	Orchid Power (Shen Zhen) Manufacturing Company	The same parent company	105,631	2.48	-	-	31,069	-	n
Voltronic Power Technology (Vietnam) Company Limited	Potentia Technology Inc. Limited	The same parent company	755,289	1.33	-	-	60,672	-	n
Other receivables
Voltronic Power Technology (Shen Zhen) Corp.	Zhongshan Voltronic Power Electronics Limited	The same parent company	696,118 (Note 4)	-	-	-	1,974	-	n

Note 1: Above amounts present in New Taiwan dollar (NT$). Foreign currency is converted into NT$: the exchange rate was US$1=NT$33.20, RMB1=NT$4.6251 as of March 31, 2025.
Note 2: As of April 30, 2025.
Note 3: The amount was eliminated upon consolidation.
Note 4: Including interest receivables of $1,974 thousand and equipment receivables of $379 thousand.

TABLE 5

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transaction Details
				Financial Statement Account	Amount (Note 5)	Payment Terms	% of Total Sales or Assets (Note 3)
1	Potentia Technology Inc. Limited	Voltronic Power Technology	2	Sales	$ 3,108,195	Net 360 days from the end of the month of when invoice is issued	62
		Voltronic Power Technology	2	Trade receivables from related parties	11,921,705	Net 360 days from the end of the month of when invoice is issued	65
		Voltronic Power Technology (Shen Zhen) Corp.	3	Sales	131,057	Net 270 days from the end of the month of when invoice is issued	3
		Voltronic Power Technology (Shen Zhen) Corp.	3	Trade receivables from related parties	81,790	Net 270 days from the end of the month of when invoice is issued	1
		Orchid Power (Shen Zhen) Manufacturing Company	3	Sales	74,715	Net 270 days from the end of the month of when invoice is issued	2
		Orchid Power (Shen Zhen) Manufacturing Company	3	Trade receivables from related parties	44,251	Net 270 days from the end of the month of when invoice is issued	1
		Zhongshan Voltronic Power Electronics Limited	3	Sales	207,039	Net 270 days from the end of the month of when invoice is issued	4
		Zhongshan Voltronic Power Electronics Limited	3	Trade receivables from related parties	142,861	Net 270 days from the end of the month of when invoice is issued	1
		Voltronic Power Technology (Vietnam) Company Limited	3	Sales	128,682	Net 270 days from the end of the month of when invoice is issued	3
		Voltronic Power Technology (Vietnam) Company Limited	3	Trade receivables from related parties	245,439	Net 270 days from the end of the month of when invoice is issued	1
2	Voltronic Power Technology (Shen Zhen) Corp.	Voltronic Power Technology	2	Sales	132,201	Net 270 days from the end of the month of when invoice is issued	3
		Voltronic Power Technology	2	Trade receivables from related parties	245,159	Net 270 days from the end of the month of when invoice is issued	1
		Potentia Technology Inc. Limited	3	Sales	929,449	Net 360 days from the end of the month of when invoice is issued	19
		Potentia Technology Inc. Limited	3	Trade receivables from related parties	4,345,143	Net 360 days from the end of the month of when invoice is issued	24
		Zhongshan Voltronic Power Electronics Limited	3	Other receivables from related parties	695,739	Loan has one-year term and is repaid in installments during the period based on the funding availability, with interest payable monthly in arrears	4
3	Zhongshan Voltronic Power Electronics Limited	Voltronic Power Technology	2	Sales	54,778	Net 270 days from the end of the month of when invoice is issued	1
		Voltronic Power Technology	2	Trade receivables from related parties	131,125	Net 270 days from the end of the month of when invoice is issued	1

(Continued)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transaction Details
				Financial Statement Account	Amount (Note 5)	Payment Terms	% of Total Sales or Assets (Note 3)
		Potentia Technology Inc. Limited	3	Sales	$ 2,134,417	Net 360 days from the end of the month of when invoice is issued	43
		Potentia Technology Inc. Limited	3	Trade receivables from related parties	6,947,382	Net 360 days from the end of the month of when invoice is issued	38
		Orchid Power (Shen Zhen) Manufacturing Company	3	Sales	112,432	Net 270 days from the end of the month of when invoice is issued	2
		Orchid Power (Shen Zhen) Manufacturing Company	3	Trade receivables from related parties	248,392	Net 270 days from the end of the month of when invoice is issued	1
4	Zhongshan Voltronic Precision Inc.	Voltronic Power Technology (Shen Zhen) Corp.	3	Sales	141,692	Net 270 days from the end of the month of when invoice is issued	3
		Voltronic Power Technology (Shen Zhen) Corp.	3	Trade receivables from related parties	161,447	Net 270 days from the end of the month of when invoice is issued	1
		Orchid Power (Shen Zhen) Manufacturing Company	3	Sales	65,440	Net 270 days from the end of the month of when invoice is issued	1
		Orchid Power (Shen Zhen) Manufacturing Company	3	Trade receivables from related parties	105,631	Net 270 days from the end of the month of when invoice is issued	1
		Zhongshan Voltronic Power Electronics Limited	3	Sales	233,387	Net 270 days from the end of the month of when invoice is issued	5
		Zhongshan Voltronic Power Electronics Limited	3	Trade receivables from related parties	400,953	Net 270 days from the end of the month of when invoice is issued	2
5	Voltronic Power Technology (Vietnam) Company Limited	Potentia Technology Inc. Limited	3	Sales	245,926	Net 270 days from the end of the month of when invoice is issued	5
		Potentia Technology Inc. Limited	3	Trade receivables from related parties	755,289	Net 270 days from the end of the month of when invoice is issued	4

Note 1: Intercompany transactions information between parent company and subsidiaries are noted within the number column as follows:
a. "0" for the parent company.
b. Subsidiaries are numbered from "1".

Note 2: Parties involved in the transaction have a directional relationship noted by the following:
a. "1" represents transactions from parent company to subsidiaries.
b. "2" represents transactions from subsidiaries to parent company.
c. "3" represents transactions between subsidiaries.

Note 3: The amounts of asset account and liability account are calculated as a percentage of the consolidated total assets. The amounts of income account are calculated as a percentage of the consolidated total sales.

Note 4: Above amounts present in New Taiwan dollar (NT$). Foreign currency is concerted into NT$ as of March 31, 2025, the amount of income accounts are converted by average exchange rate into New Taiwan dollar (NT$) as of the first quarter.

Note 5: The main transaction only expense unidirectional transactions information between intercompany relationship, and the amount was eliminated upon consolidation.

(Concluded)

TABLE 6

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars and Foreign Currencies, and Shares)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2025			Net Income (Loss) of the Investee	Share of Profit (Loss) (Note 2)	Note
				March 31, 2025	December 31, 2024	Number of Stock (Shares)	%	Carrying Value
Voltronic Power Technology	Voltronic International Corp.	Anguilla	Investment activities	$ 888,285 (US$ 28,000)	$ 888,285 (US$ 28,000)	28,000	100	$ 13,165,522	$ 248,260	$ 243,918	Notes 1, 2 and 3
	Voltronic Power Technology (Vietnam) Company Limited	Bac Ninh Province, Vietnam	Design, manufacture and sale of UPS and inverters	30,945 (US$ 1,000)	30,945 (US$ 1,000)	-	100	681,929	51,976	51,976	Notes 1, 2 and 4
	Inversolenergy Tech, Inc.	United States	Marketing, technical support and after-sales service of UPS and inverters	16,135 (US$ 500)	16,135 (US$ 500)	100	100	17,125	142	142	Notes 1 and 2
Voltronic International Corp.	Potentia Technology Inc. Limited	Hong Kong	Sale of uninterruptible power systems (UPS) and inverters	-	-	-	100	45,567	3,637	3,637	Notes 1 and 2
	Voltronic International H.K. Corp. Limited	Hong Kong	Investment activities	888,285 (US$ 28,000)	888,285 (US$ 28,000)	217,240	100	13,128,048	244,623	244,623	Notes 1 and 2

Note 1: Based on reviewed financial statements.
Note 2: The amount of subsidiary was eliminated upon consolidation.
Note 3: The gain and loss of net amount of investment which recognized in the current period is the reversal of unrealized gain of the previous upstream transaction of $989 thousand and the deduction of unrealized gain of upstream transaction of the current period of $5,590 thousand and the addition of realized disposition of property, plant and equipment benefit of $259 thousand in the sidestream transaction.
Note 4: This company is a "limited company" without stock issuance.
Note 5: For information of investments in mainland China, refer to Table 7.

TABLE 7

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars and Foreign Currencies)

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:

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	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of March 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 March 31, 2025 (Notes 2 and 3)	Accumulated Repatriation of Investment Income as of March 31, 2025
					Outflow	Inflow
Voltronic Power Technology (Shen Zhen) Corp.	Design, manufacture and sale of UPS and inverters	$ 64,630 (US$ 2,000)	b.	$ 64,630 (US$ 2,000)	$ -	$ -	$ 64,630 (US$ 2,000)	$ (20,630)	100	$ (20,630)	$ 5,275,909	$ -
Orchid Power (Shen Zhen) Manufacturing Company	Design, manufacture and sale of UPS and inverters	30,027 (US$ 1,000)	b.	30,027 (US$ 1,000)	-	-	30,027 (US$ 1,000)	213,567	100	213,567	5,886,226	-
Zhongshan Voltronic Power Electronics Limited	Design, manufacture and sale of UPS and inverters	2,794,537 (US$ 25,000) (RMB 450,000)	b.	793,628 (US$ 25,000)	-	-	793,628 (US$ 25,000)	51,686	100	51,686	7,272,269	-
Zhongshan Voltronic Precision Inc.	Design, manufacture and sale of UPS and inverters related components	250,401 (RMB 56,000)	c.	-	-	-	-	19,027	100	19,027	492,616	-

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

Accumulated Outflow Remittance for Investment in Mainland China as of March 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)	$ 6,577,716

Note 1: Investment methods are classified into the following three categories:
a. Directly invest in a company in mainland China.
b. Through investing in the third area, which then invested in the investee in mainland China.
c. Other methods.

Note 2: The investment gain or loss and the carrying amount as of March 31, 2025:

The Company invested Zhongshan Voltronic Power Technology (Shen Zhen) Corp., Orchid Power (Shen Zhen) Manufacturing Company and Zhongshan Voltronic Power Electronics Limited through its subsidiary, Voltronic International H.K. Corp. Limited and recognized net income and book value of investee, Zhongshan Voltronic Precision Inc. through subsidiary Zhongshan Voltronic Power Electronics Limited as of March 31, 2025.

Note 3: The amount was calculated based on the financial statements which were reviewed 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.
Note 5: The amount was eliminated upon consolidation.

TABLE 8

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

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 THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

There were the amounts and percentages of purchases, also the amounts and percentages displayed at the end of the period of the related payables.

Investee Company	Transaction Type	Purchase/Sale		Transaction Details			Notes/Accounts Receivable (Payable)		Unrealized Gain
		Amount	%	Price	Payment Terms	Comparison with Normal Transactions	Ending Balance	%
Voltronic Power Technology (Shen Zhen) Corp.	Purchase	$ 1,008,467	30	Set by agreement of both parties	Net 270 days from the end of the month of when invoice is issued	No identical item	$ (4,332,343)	(35)	$ 5,590
Zhongshan Voltronic Power Electronics Limited	Purchase	2,039,477	62	Set by agreement of both parties	Net 270 days from the end of the month of when invoice is issued	No identical item	(7,690,488)	(62)	-

There were the amounts and percentages of the sales, also the amounts and percentages displayed in the ending balance of the related receivables: None.
The amount and percentage of sales and the amount of the resultant gains or losses: None.
The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purpose: None.
The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: None.
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.

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VOLTRONIC — Interim / Quarterly Report 2025

52555_rns_2026-04-13_a7076202-df25-4445-977b-85c1de69036b.pdf

Voltronic Power Technology Corp. and Subsidiaries

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Conclusion

Notice to Readers

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

b. Basis of preparation

c. Basis of consolidation

d. Other material accounting policies

Income tax expense

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT AMORTIZED COST

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

11. SUBSIDIARIES

12. PROPERTY, PLANT AND EQUIPMENT

Assets Used by the Group

Buildings

13. LEASE ARRANGEMENTS

14. OTHER INTANGIBLE ASSETS

Cost

Accumulated amortization

15. OTHER ASSETS

16. BORROWINGS

17. NOTES PAYABLE AND TRADE PAYABLES

18. OTHER LIABILITIES

19. RETIREMENT BENEFIT PLANS

Defined Contribution Plans

21. REVENUE

22. NET PROFIT (LOSS) FROM OPERATIONS

23. INCOME TAXES RELATING TO CONTINUING OPERATIONS

24. EARNINGS PER SHARE

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

26. CASH FLOW INFORMATION

27. CAPITAL MANAGEMENT

28. FINANCIAL INSTRUMENTS

Sensitivity analysis

2) Credit risk

3) Liquidity risk

29. TRANSACTIONS WITH RELATED PARTIES

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

33. SEPARATELY DISCLOSED ITEMS

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

VOLTRONIC POWER TECHNOLOGY CORP. AND SUBSIDIARIES

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