Weltrend - Annual Report 2024 | FinancialReports.eu

Stock Code: 2436

Weltrend Semiconductor, Inc. and Its Subsidiaries

Consolidated Financial Statements and Independent Auditor’s Report For the Years Ended December 31, 2024 and 2023

Address: 2F., No. 24, Industry E. 9th Rd., Hsinchu Science Park Tel.: (03)578-0241

§TABLE OF CONTENTS§

Item 1. Cover 2. Table of Contents 3. Representation Letter 4. Independent Auditor’s Report 5. Consolidated Balance Sheet 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to Consolidated Financial Statements (1) Company History (2) Date and Procedures for Approval of Financial Statements (3) Application of New, Amended and Revised Standards and Interpretations (4) Summary of Significant Accounting Policies (5) Significant Accounting Judgments and Estimations, and Main Sources of Assumption Uncertainties (6) Summary of Significant Accounting Items (7) Related Party Transactions (8) Pledged Assets (9) Significant Subsequent Events (10) Information on foreign currency assets and liabilities with significant effect: (11) Additional Disclosures 1. Information on Significant Transactions 2. Information on Investees 3. Information on investment in Mainland China 4. Information on major shareholders (12) Segment Information	Page 1 2 3 4~7 8 9~10 11 12~13 14 14 14~16 16~28 28 29~63 64 64 64 65 65~66, 69~71 66, 72~73 66, 74~75 66, 76 66~68	No. of notes to financial statements
		- - - - - - - - 1 2 3 4 5 6~32 22 34 35 36 37 37 37 37 38

Representation Letter

Considering that the companies to be included into the consolidated financial statements of affiliates under the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises were the same as those to be included into the consolidated financial statements of the parent and subsidiaries under IFRS 10 for 2024 (from January 1, 2024 to December 31, 2024), and the relevant information to be disclosed in the consolidated financial statements of the affiliates has already disclosed in said consolidated financial statements of the parent and subsidiaries, no consolidated financial statements of affiliates were prepared separately.

It is hereby certified that the information disclosed herein is true and correct.

Name of Company: Weltrend Semiconductor, Inc.

Person in Charge: Lin, Shyi-Ming

March 7, 2025

Independent Auditor’s Report

To Weltrend Semiconductor, Inc. and Its Subsidiaries,

Audit opinion

We have reviewed the accompanying parent company only balance sheets of Weltrend Semiconductor, Inc. and Its Subsidiaries for the years ended December 31, 2024 and 2023 and the relevant consolidated statements of comprehensive income, changes in equity, and cash flows for the years then ended, and relevant notes, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023 and for the years then ended, and its consolidated financial performance and its consolidated cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China, based on our audit results and the audit reports of other certified public accountants (CPAs) (refer to the section of “Other matters”).

Basis of audit opinion

We conducted our audits in accordance with the Regulations Governing the Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the “Auditor's responsibilities for the audit of the consolidated financial statements” paragraph of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We are convinced that we have acquired enough and appropriate audit evidence to serve as the basis of audit opinion.

Key audit matters

Key audit matters refer to the most vital matters in our audit of the Group’s consolidated financial statements for the year ended December 31, 2024 based on our professional judgment. These matters were addressed in our audit of the consolidated financial statements as a whole, and in forming our audit opinion. We do not express a separate opinion on these matters.

Key audit matters of the Group’s consolidated financial statements for the year ended December 31, 2024, are stated as follows

Sales revenue recognition

The Group’s consolidated operating revenue for 2024 amounted to NT$3,094,619 thousand. Please Notes 4 and 26 to the consolidated financial statements for accounting policies and information on revenue recognition. The Group’s operating revenue mainly includes research, development, production, and sales of integrated circuits and sales of foreign brands’ integrated circuits as an agent. Due to the large number of sales clients located at home and abroad, we listed the sales revenue which grew compared with the last year and that from specific counterparties as one of the key audit matters.

The main audit procedures we performed for the above matters are as follows

Learned about and tested the effectiveness of the main internal control design and implementation for sales revenue.
Sampled and verified the orders and shipping documents of specific counterparties to confirm the authenticity of the changes in sales revenue.
Sampled and checked the receipts and invoices related to sales revenue and the payment status, checked if transaction counterparties existed to verify if the sales really happened, and checked if there is any anomaly in the sales clients and the payment recipients.

Other matters

The Company has also prepared the parent company-only financial statements for the years ended December 31, 2024 and 2023, for which we have issued an audit report, along with an unqualified opinion, for reference.

Responsibilities of the management and the governing bodies for the consolidated financial statements

The management’s responsibilities are to prepare the consolidated financial statements with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively referred to as “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China and to maintain necessary internal control associated with the preparation in order to ensure that the consolidated financial statements are free from material misstatement arising from fraud or error.

In preparing the consolidated financial statements, the management is responsible for assessing the ability of the Group in continuing as a going concern, disclosing relevant matters, and adopting the going concern basis of accounting unless the management intends to liquidate the Group or cease the operations without other viable alternatives.

The Group’s governing bodies (including the Audit Committee) are responsible for supervising the financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance on whether the consolidated financial statements as a whole are free from material misstatement arising from fraud or error and to issue an independent auditors' report. Reasonable assurance is a high-level assurance but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatement may arise from frauds or errors. If the amounts of misstatements, either separately or in aggregate, could reasonably be expected to influence the economic decisions of the users of the consolidated financial statements, they are considered material.

We have utilized our professional judgment and maintained professional doubt when performing the audit work in accordance with the auditing standards generally accepted in the Republic of China. We also performed the following tasks:

Identify and assess the risks of material misstatement arising from fraud or error within the consolidated financial statements; designed and executed countermeasures in response to said risks, and obtained sufficient and appropriate audit evidence to provide a basis for our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error.
Obtain an understanding of the internal control related to the audit in order to design appropriate audit procedures under the circumstances, while not for expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and relevant disclosures made by the management.
Conclude on the appropriateness of the management's adoption of the going concern basis of accounting based on the audit evidence obtained and whether a material uncertainty exists for events or conditions that may cast significant doubt over the Group’s ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we shall remind users of the consolidated financial statements to pay attention to relevant disclosures in said statements within our audit report. If such disclosures are inadequate, we need to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the consolidated financial statements (including relevant notes), and whether the consolidated financial statements adequately present the relevant transactions and events.

Obtain sufficient and appropriate audit evidence concerning the financial information of entities within the Group, to express an opinion on the consolidated financial statements. We were responsible for guiding, supervising, and performing the audit and forming an audit opinion on the Group.

The matters communicated between us and the governing bodies included the planned scope and times of the audit and material audit findings (including any Significant deficiencies in internal control that we identify during the audit).

We also provide the governing bodies with a declaration that we have complied with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China regarding independence and communicated with them all relations and other matters that may possibly be regarded as detrimental to our independence (including relevant protective measures).

From the matters communicated with the governing bodies, we determined the key audit matters for the audit of the Group’s consolidated financial statements for the year ended December 31, 2024. We have clearly indicated such matters in the auditors' report. Unless legal regulations prohibit the public disclosure of specific matters, or in extremely rare cases, where we decided not to communicate over specific items in the auditors' report for it could be reasonably anticipated that the negative effects of such disclosure would be greater than the public interest it brings forth.

The engagement partners on the audits resulting in this independent auditors’ report are Cheng-Chih, Lin and Chih-yuan Wen.

Deloitte & Touche Taipei, Taiwan Republic of China

March 7, 2025

Weltrend Semiconductor, Inc. and Its Subsidiaries

Consolidated Balance Sheet

December 31, 2024 and 2023

Code 1100 1110 1120 1136 1150 1170 1200 1220 130X 1410 11XX 1510 1517 1535 1600 1755 1760 1780 1805 1840 1915 1920 1990 15XX 1XXX	Assets Current assets Cash and cash equivalents (Notes 4, 6 and 32) Financial assets at fair value through profit or loss - current (Notes 4, 7 and 32) Financial assets at fair value through other comprehensive income - current (Notes 4, 8 and 32) Financial assets at amortized cost - current (Notes 4, 9 and 32) Notes receivable (Notes 4, 10 and 32) Accounts receivable, net (Notes 4, 10, 26 and 32) Other receivables (Notes 4, 10 and 32) Current tax assets (Notes 4 and 28) Inventory (Notes 4 and 11) Prepayments (Note 18) Total current assets Non-current assets Financial assets at fair value through profit or loss - non-current (Notes 4, 7 and 32) Financial assets at fair value through other comprehensive income - non-current (Notes 4, 8 and 32) Financial assets at amortized cost - non-current (Notes 4, 9, 32, and 34) Property, plant and equipment (Notes 4, 13 and 34) Right-of-use assets (Notes 4 and 15) Investment property (Notes 4 and 14) Intangible assets (Notes 4 and 17) Goodwill (Notes 4 and 16) Deferred tax assets (Notes 4 and 28) Prepayments for equipment Guarantee deposits paid (Note 32) Other non-current assets Total non-current assets Total assets		December 31,2024 Amount % $ 874,562 15 771,858 13 550,956 9 314,285 5 13,026 - 1,013,048 17 76,015 1 14,826 - 820,449 14 32,602 1 4,481,627 75 82,771 1 70,289 1 15,405 - 198,070 3 49,200 1 47,023 1 570,765 10 447,603 8 1,534 - 1,440 - 6,585 - 2,012 - 1,492,697 25 $ 5,974,324 100	December 31,2024 Amount % $ 874,562 15 771,858 13 550,956 9 314,285 5 13,026 - 1,013,048 17 76,015 1 14,826 - 820,449 14 32,602 1 4,481,627 75 82,771 1 70,289 1 15,405 - 198,070 3 49,200 1 47,023 1 570,765 10 447,603 8 1,534 - 1,440 - 6,585 - 2,012 - 1,492,697 25 $ 5,974,324 100		December 31,2023 Amount % $ 1,242,075 21 509,433 9 468,486 8 277,133 5 13,574 - 923,254 16 6,806 - 11,619 - 789,659 13 34,003 1 4,276,042 73 80,663 1 68,074 1 10,401 - 213,906 4 48,314 1 50,208 1 641,476 11 447,603 8 3,718 - - - 6,565 - 4,993 - 1,575,921 27 $ 5,851,963 100	December 31,2023 Amount % $ 1,242,075 21 509,433 9 468,486 8 277,133 5 13,574 - 923,254 16 6,806 - 11,619 - 789,659 13 34,003 1 4,276,042 73 80,663 1 68,074 1 10,401 - 213,906 4 48,314 1 50,208 1 641,476 11 447,603 8 3,718 - - - 6,565 - 4,993 - 1,575,921 27 $ 5,851,963 100	Code 2100 2120 2150 2170 2206 2209 2230 2250 2280 2300 21XX 2530 2570 2580 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3500 31XX 36XX 3XXX	Liabilities and equity		Unit: Unit: NT$ thousand, except for earnings per share that is in NT$ December 31,2024 December 31,2023 Amount % Amount % $ 135,618 2 $ 150,000 3 2,310 - 110 - 579 - 629 - 329,682 6 232,687 4 71,487 1 51,086 1 176,900 3 75,064 1 26,622 1 844 - 1,062,505 18 - - 8,634 - 12,207 - 18,570 - 17,341 - 6,976 - 6,897 - 1,839,883 31 546,865 9 - - 1,041,009 18 116,845 2 126,466 2 31,321 1 31,519 1 30,564 - 52,285 1 440 - 440 - 179,170 3 1,251,719 22 2,019,053 34 1,798,584 31 1,780,116 30 1,780,116 30 266,971 4 266,965 4 658,536 11 640,592 11 24,855 1 167,949 3 974,154 16 733,853 12 1,657,545 28 1,542,394 26 104,997) ( 2) ( 24,853) - 206,993) ( 3) ( 83,400) ( 1) 3,392,642 57 3,481,222 59 562,629 9 572,157 10 3,955,271 66 4,053,379 69 $ 5,974,324 100 $ 5,851,963 100	Unit: Unit: NT$ thousand, except for earnings per share that is in NT$ December 31,2024 December 31,2023 Amount % Amount % $ 135,618 2 $ 150,000 3 2,310 - 110 - 579 - 629 - 329,682 6 232,687 4 71,487 1 51,086 1 176,900 3 75,064 1 26,622 1 844 - 1,062,505 18 - - 8,634 - 12,207 - 18,570 - 17,341 - 6,976 - 6,897 - 1,839,883 31 546,865 9 - - 1,041,009 18 116,845 2 126,466 2 31,321 1 31,519 1 30,564 - 52,285 1 440 - 440 - 179,170 3 1,251,719 22 2,019,053 34 1,798,584 31 1,780,116 30 1,780,116 30 266,971 4 266,965 4 658,536 11 640,592 11 24,855 1 167,949 3 974,154 16 733,853 12 1,657,545 28 1,542,394 26 104,997) ( 2) ( 24,853) - 206,993) ( 3) ( 83,400) ( 1) 3,392,642 57 3,481,222 59 562,629 9 572,157 10 3,955,271 66 4,053,379 69 $ 5,974,324 100 $ 5,851,963 100
			Amount $ 874,562 771,858 550,956 314,285 13,026 1,013,048 76,015 14,826 820,449 32,602 4,481,627 82,771 70,289 15,405 198,070 49,200 47,023 570,765 447,603 1,534 1,440 6,585 2,012 1,492,697 $ 5,974,324			Amount $ 1,242,075 509,433 468,486 277,133 13,574 923,254 6,806 11,619 789,659 34,003 4,276,042 80,663 68,074 10,401 213,906 48,314 50,208 641,476 447,603 3,718 - 6,565 4,993 1,575,921 $ 5,851,963					Amount $ 135,618 2,310 579 329,682 71,487 176,900 26,622 1,062,505 8,634 18,570 6,976 1,839,883 - 116,845 31,321 30,564 440 179,170 2,019,053 1,780,116 266,971 658,536 24,855 974,154 1,657,545 104,997) 206,993) 3,392,642 562,629 3,955,271 $ 5,974,324
									Current liabilities Short-term borrowings (Notes 4, 19, 32 and 34) Financial liabilities at fair value through profit or loss - current (Notes 4, 7, 20, and 32) Notes payable (Notes 4, 21 and 32) Accounts payable (Notes 4, 21 and 32) Remuneration payable to employees and directors and supervisors (Note 27) Other payables (Notes 4, 22 and 32) Current tax liabilities (Notes 4 and 28) Corporate bonds payable due within one year (Notes 20 and 32) Liabilities - current (Notes 4 and 23) Lease liabilities - current (Notes 4, 15 and 32) Other current liabilities (Notes 22 and 26) Total current liabilities Non-current liabilities Corporate bonds payable (Notes 20 and 32) Deferred tax liabilities (Note 4 and 28) Lease liabilities - non-current (Notes 4, 15 and 32) Net defined benefit liability - non-current (Notes 4 and 24) Other non-current liabilities (Notes 22 and 32) Total non-current liabilities Total liabilities Equity attributable to owners of the Company (Notes 4, 20 and 25) Common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury stock Total equity attributable to owners of the Parent Non-controlling interests (Notes 4 and 25) Total equity Total liabilities and equity	( (		( (

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

Weltrend Semiconductor, Inc. and Its Subsidiaries

Consolidated Statements of Comprehensive Income For the Years Ended December 31, 2024 and 2023

Unit: Thousands of NTD; except for earnings per share in NTD

Code 4000 Operating revenue, net (Notes 4 and 26) 5000 Operating costs (Notes 11 and 27) 5900 Operating gross margins Operating expenses (Note 27) 6100 Selling expenses 6200 Administrative expenses 6300 Research and Development expenses 6450 Expected credit impairment losses (Notes 4 and 10) 6000 Total operating expenses 6900 Net operating profits Non-operating income and expenses 7100 Interest income (Notes 4 and 27) 7010 Other income (Notes 4 and 27) 7020 Other profits and losses (Notes 4 and 27) 7050 Financial costs (Notes 4 and 27) 7000 Total non-operating income and expenses 7900 Net profit before taxation 7950 Income tax expense (Notes 4 and 28) 8200 Net income for the year		2024		% 100 70 30 7 4 14 - 25 5 1 2 4 1) 6 11 1 10		2023
		Amount $ 3,094,619 2,172,134 922,485 199,533 113,393 445,441 55 758,422 164,063 44,524 50,488 113,179 26,423) 181,768 345,831 50,966 294,865				Amount $ 2,885,560 2,103,785 781,775 186,078 109,498 444,189 180 739,945 41,830 46,260 54,286 109,414 25,304) 184,656 226,486 19,400 207,086		%
	(		(		(		(	100 73 27 6 4 15 - 25 2 1 2 4 1) 6 8 1 7

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Code Other comprehensive income 8310 Items not reclassified to profit or loss: 8311 Remeasurement of defined benefit plans (Notes 4 and 24) 8316 Unrealized gains or losses on investment in equity instruments at fair value through other comprehensive income (Note 4) 8349 Income tax related to items not reclassified (Notes 4 and 28) 8360 Items that may subsequently be reclassified to profit or loss: 8361 Exchange differences on the translation of financial statements of foreign operations (Notes 4 and 25) 8300 Other comprehensive income for the year 8500 Total comprehensive income for the year Net profits (losses) attributable to: 8610 Owners of the parent 8620 Non-controlling interests 8600 Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interests 8700 Earnings per share (Note 29) 9750 Basic 9850 Diluted	2024	% - ( 1 ) - - ( 1) 9 9 1 10 8 1 9	2023
	Amount $ 9,047 ( 37,790 ) ( 72 ) 1,353 ( 27,462) $ 267,403 $ 275,562 19,303 $ 294,865 $ 247,535 19,868 $ 267,403 $ 1.57 $ 1.50		Amount ( $ 604 ) 114,721 6 ( 411) 113,712 $ 320,798 $ 209,240 ( 2,154) $ 207,086 $ 322,539 ( 1,741) $ 320,798 $ 1.18 $ 1.17		%
					- 4 - - 4 11 7 - 7 11 - 11

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

Weltrend Semiconductor, Inc. and Its Subsidiaries

Consolidated Statements of Changes in Equity

For the Years Ended December 31, 2024 and 2023

			Equityattributable to	Equityattributable to	owners of the Parent						Unit: NT$ thousand Non-controlling interests Total equity $ 611,292 $ 3,764,655 - - - - - ( 212,399 ) - 193,693 ( 2,154 ) 207,086 413 113,712 ( 1,741) 320,798 2 23,934 - 94 ( 39,140 ) ( 39,140 ) 1,744 1,744 - - 572,157 4,053,379 - - - - - ( 212,528 ) 19,303 294,865 565 ( 27,462) 19,868 267,403 - 4,081 - ( 127,668 ) ( 29,396 ) ( 29,396 ) - - $ 562,629 $ 3,955,271	Unit: NT$ thousand Non-controlling interests Total equity $ 611,292 $ 3,764,655 - - - - - ( 212,399 ) - 193,693 ( 2,154 ) 207,086 413 113,712 ( 1,741) 320,798 2 23,934 - 94 ( 39,140 ) ( 39,140 ) 1,744 1,744 - - 572,157 4,053,379 - - - - - ( 212,528 ) 19,303 294,865 565 ( 27,462) 19,868 267,403 - 4,081 - ( 127,668 ) ( 29,396 ) ( 29,396 ) - - $ 562,629 $ 3,955,271	Unit: NT$ thousand Non-controlling interests Total equity $ 611,292 $ 3,764,655 - - - - - ( 212,399 ) - 193,693 ( 2,154 ) 207,086 413 113,712 ( 1,741) 320,798 2 23,934 - 94 ( 39,140 ) ( 39,140 ) 1,744 1,744 - - 572,157 4,053,379 - - - - - ( 212,528 ) 19,303 294,865 565 ( 27,462) 19,868 267,403 - 4,081 - ( 127,668 ) ( 29,396 ) ( 29,396 ) - - $ 562,629 $ 3,955,271
Common stock Number of Shares (in thousands) Amount 178,010 $ 1,780,100 - - - - - - - - - - - - - - - - 1 16 - - - - - - 178,011 1,780,116 - - - - - - - - - - - - - - - - - - - - 178,011 $ 1,780,116	Capital surplus $ 69,026 - - - 193,693 - - - 4,168 78 - - - 266,965 - - - - - - 6 - - - $ 266,971		Retained earnings		Unappropriated earnings $ 909,856 ( 7,151 ) ( 135,896 ) ( 212,399 ) - 209,240 ( 587) 208,653 - - - - ( 29,210) 733,853 ( 17,944 ) 143,094 ( 212,528 ) 275,562 8,835 284,397 - - - 43,282 $ 974,154	Other equity Unrealized gain or loss on financial assets measured at fair value through other comprehensive income Exchange differences on the translation of financial statements of foreign operations ( $ 1,571 ) ( $ 166,378 ) - - - - - - - - - - ( 411) 114,297 ( 411) 114,297 - - - - - - - - - 29,210 ( 1,982 ) ( 22,871 ) - - - - - - - - 1,353 ( 38,215) 1,353 ( 38,215) - - - - - - - ( 43,282) ($ 629) ($ 104,368)			Treasurystock $ 103,164 ) - - - - - - - 19,764 - - - - 83,400 ) - - - - - - 4,075 127,668 ) - - $ 206,993)
						Exchange differences on the translation of financial statements of foreign operations ( $ 1,571 ) - - - - - ( 411) ( 411) - - - - - ( 1,982 ) - - - - 1,353 1,353 - - - - ($ 629)
Number of Shares (in thousands) 178,010 - - - - - - - - 1 - - - 178,011 - - - - - - - - - - 178,011		Legal reserve $ 633,441 7,151 - - - - - - - - - - - 640,592 17,944 - - - - - - - - - $ 658,536		Special reserve $ 32,053 - 135,896 - - - - - - - - - - 167,949 - 143,094 ) - - - - - - - - $ 24,855
			(		( ( ( ( ( ( (	( ( ( ( (	( ( ( ( ( (	( ( ( (		( ( ( (	( ( ( (	( ( ( ( ( (	$ 3,764,655 - - 212,399 ) 193,693 207,086 113,712 320,798 23,934 94 39,140 ) 1,744 - 4,053,379 - - 212,528 ) 294,865 27,462) 267,403 4,081 127,668 ) 29,396 ) - $ 3,955,271

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

Weltrend Semiconductor, Inc. and Its Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

Unit: NT$ thousand

		Unit: NT$ thousand
Code Cash flows from operating activities A10000 Net income before tax for 2023 A20010 Income and expense items that do not affect cash flow: A20100 Depreciation expenses A20200 Amortization expenses A20300 Expected credit impairment losses A20400 Net loss (gain) on financial assets at fair value through profit or loss A20900 Financial costs A21200 Interest income A21300 Dividend income A21900 Cost of share-based remuneration A22500 Gain on disposal of property, plant and equipment A23800 Losses on inventory valuation loss and obsolescence (gains on inventory value recovery) A24100 Foreign exchange gains (losses) – net A29900 Lease modification gain A30000 Net changes in operating assets and liabilities A31130 Notes receivable A31150 Accounts receivable A31180 Other receivables A31200 Inventory A31230 Prepayments A32130 Notes payable A32150 Accounts payable A32990 Remuneration payable to employees and directors and supervisors A32180 Other payables A32200 Provisions A32230 Other current liabilities A32240 Net defined benefit liability A33000 Cash inflow from operations A33100 Interest received A33300 Interests paid A33500 Income tax paid AAAA Net cash inflow from operating activities	2024 $ 345,831 66,457 104,949 55 3,202 26,423 ( 44,524 ) ( 45,560 ) 6 ( 157 ) ( 24,564 ) ( 97,773 ) ( 13 ) 546 ( 30,062 ) ( 9,900 ) ( 6,227 ) 4,382 ( 50 ) 83,553 20,401 20,968 ( 3,573 ) 79 ( 12,746) 401,703 46,041 ( 4,498 ) ( 35,832) 407,414	2023
		$ 226,486 71,001 112,581 180 ( 110,449 ) 25,304 ( 46,260 ) ( 51,958 ) 5,914 - 93,252 10,996 - 11,939 ( 168,368 ) 5,736 707,174 6,371 ( 650 ) ( 8,226 ) 1,822 ( 3,882 ) 3,451 54 ( 3,220) 889,248 44,652 ( 18,830 ) ( 101,842) 813,228

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Code Cash flows from investing activities B00010 Acquisition of financial assets measured at fair value through other comprehensive income B00020 Sale of financial assets at fair value through other comprehensive income B00040 Acquisition of financial assets at amortized cost B00050 Disposal of financial assets at amortized cost B00100 Acquisition of financial assets at fair value through profit or loss B00200 Sale of financial assets at fair value through profit or loss B02700 Purchase of property, plant, and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 Increase in refundable deposits B04500 Acquisition of intangible assets B07600 Dividend received BBBB Net cash inflow (outflow) from investing activities Cash flows from financing activities C00100 Decrease in short-term borrowings C01200 Convertible corporate bonds issued C03000 Increase in guarantee deposits received C04200 Principal repayment of lease liabilities C04500 Cash dividends paid C04900 Purchase of treasury shares C05000 Price of disposal of treasury shares C05800 Cash dividends paid to non-controlling interests CCCC Net cash outflow from financing activities DDDD Impact of changes in exchange rate on cash and cash equivalents EEEE Net (decrease) increase in cash and cash equivalents for 2023 E00100 Opening balance of cash and cash equivalents E00200 Ending balance of cash and cash equivalents	2024 ( $ 771,820 ) 610,903 ( 657,806 ) 615,650 ( 1,187,988 ) 980,616 ( 29,789 ) 1,978 ( 20 ) ( 34,235 ) 45,389 ( 427,122) ( 13,031 ) - - ( 20,760 ) ( 212,528 ) ( 127,668 ) 4,075 ( 29,396) ( 399,308) 51,503 ( 367,513 ) 1,242,075 $ 874,562	2023
		( $ 463,153 ) 559,860 ( 457,379 ) 352,714 ( 332,688 ) 481,572 ( 18,678 ) - ( 23 ) ( 35,314 ) 52,527 139,438 ( 1,387,680 ) 1,228,652 440 ( 20,360 ) ( 212,399 ) - 19,764 ( 39,140) ( 410,723) ( 8,181) 533,762 708,313 $ 1,242,075

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

Weltrend Semiconductor, Inc. and Its Subsidiaries

Notes to Consolidated Financial Statements

For the Years Ended December 31, 2024 and 2023

(In thousand NTD, unless otherwise specified)

1. Company History

Weltrend Semiconductor, Inc. (the “Company”) was incorporated in Hsinchu Science Park in July 1989 and entered operations in September of the same year, mainly engaging in research, development, production, testing, and sales of digital and analog hybrid special application integrated circuits, as well as digital and analog integrated circuits.

The Company’s stock has been listed on the Taiwan Stock Exchange Corporation (TWSE) since September 2000.

The consolidated financial statements are presented in the Company’s functional currency – New Taiwan dollar.

2. Date and Procedures for Approval of Financial Statements

The consolidated financial statements were approved by the Board of Directors on March 7, 2025.

3. Application of New, Amended and Revised Standards and Interpretations

(1) Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The application of the amended IFRSs endorsed and issued into effect by the FSC does not have material impact on the accounting policies of the Company and subsidiaries of the Company (hereinafter collectively referred to as the “Group”).

(2) Application of IFRSs endorsed by FSC in 2025

The new/amended/revised standards and Effective date of IASB interpretation publication Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 1) Amendments to IFRS 9 and IFRS 7 “Amendments to January 1, 2026 (Note 2) Financial Instruments: Classification and

Measurement” regarding the revised application guidance on the classification of financial assets.

Note 1: The amendments apply to the annual reporting periods beginning on or after January 1, 2025. When the amendments are first applied for, the period of comparison shall not be re-stated, but the impact shall be recognized in the retained earnings on the date of initial application or the exchange differences of foreign operations under equity (as appropriate) and related assets and liabilities.

Note 2: It is applicable to the annual reporting periods beginning on or after January 1, 2026. Enterprises may also choose to apply the same earlier, on January 1, 2025. When the amendments are first applied, the effects of the amendments shall be recognized on the date of initial application, but it is not necessary to re-compile the comparison period. However, if the enterprise does not adopt a forward-looking mindset, it may choose to re-compile the financial statements.
(3) The IFRSs Accounting Standards in issue by the IASB but not yet endorsed and issued into effect by the FSC

issued into effect by the FSC
The new/amended/revised standards and interpretation "Annual Improvements to IFRS Accounting Standards — Volume 11" Amendments to IFRS 9 and IFRS 7 “Amendments to Financial Instruments: Classification and Measurement” regarding the revised application guidance on the derecognition of financial debts. Amendment to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” Amendment to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and its Affiliate or Joint Venture.” IFRS 17 “Insurance Contracts” Amendment to IFRS 17 Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information” IFRS 18 “Presentation and Disclosures of Financial Statements” IFRS 19 "Subsidiaries without public Accountability: Disclosures"	Effective date of IASB publication(Note 1)
	January 1, 2026 January 1, 2026 January 1, 2026 To be determined January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

issued into effect by the FSC

The new/amended/revised standards and
interpretation
"Annual Improvements to IFRS Accounting
Standards — Volume 11"
Amendments to IFRS 9 and IFRS 7 “Amendments to
Financial Instruments: Classification and
Measurement” regarding the revised application
guidance on the derecognition of financial debts.
Amendment to IFRS 9 and IFRS 7 “Contracts
Referencing Nature-dependent Electricity”
Amendment to IFRS 10 and IAS 28, “Sale or
Contribution of Assets between an Investor and its
Affiliate or Joint Venture.”
IFRS 17 “Insurance Contracts”
Amendment to IFRS 17
Amendment to IFRS 17 “Initial Application of IFRS
17 and IFRS 9 - Comparative Information”
IFRS 18 “Presentation and Disclosures of Financial
Statements”
IFRS 19 "Subsidiaries without public Accountability:
Disclosures"

Effective date of IASB
publication(Note 1)

January 1, 2026
January 1, 2026
January 1, 2026
To be determined
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2027
January 1, 2027

Note 1: Unless otherwise specified, the aforementioned new/amended/revised standards or interpretations are effective for annual reporting periods beginning on or after the respective effective dates.
IFRS 18 “Presentation and Disclosures of Financial Statements”

IFRS 18 will replace IAS 1 “Presentation of Financial Statements” and the main changes include:

The income and loss items shall be divided into business, investment, financing, income tax, and discontinued operations.
The income statement shall present operating profit or loss, profit or loss before financing and income tax, as well as subtotal and total profit and loss.
Provide guidance to strengthen the requirements of aggregation and segmentation: The Group must identify assets, liabilities, equity, revenues, expenses, and cash flows arising from individual transactions or other events and classify and aggregate them on the basis of common

characteristics so that each line item presented in the primary financial statements has at least one similar characteristic. Items with non-similarity characteristics in the main financial statements and notes should be divided. The Group only marks such items as “others” when no more informative mark can be found.

Increasing the disclosure of the performance measurement defined by management: When the Group has opened communication outside the financial statements, and when management’s view of the Group’s overall financial performance on a certain aspect is communicated with the users of the financial statements, it shall be disclosed in a separate note to the financial statements on performance measurements defined by management, including descriptions of the measurements, how to calculate them, reconciliations between them and any subtotals or totals specified in IFRS, and the impact of relevant adjustments on income tax and non-controlling interests, etc.

In addition to the above effects, as of the date of approving the consolidated financial statements for release, the Group had continued to evaluate the other effect of the amendments to the above standards and interpretations on its financial position and financial performance, and the relevant effects will be disclosed when the assessment is completed.

4. Summary of Significant Accounting Policies

(1) Compliance Statement

The consolidated financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC.

(2) Basis of preparation

The consolidated financial statements were prepared on the historical cost basis, except for financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of defined benefit obligation less the fair value of plan assets.

The assessment of fair value could be classified into Level 1 to Level 3 by the observable intensity and importance of the related input value:

Level 1 input value: refers to the quotation of the same asset or liability in an active market as of the assessment (before adjustment).
Level 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.
Level 3 input value: the unobservable input value of asset or liability.
(3) Criteria for classification of current and non-current assets and liabilities
- Current assets include:
Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the balance sheet date; and

Cash and cash equivalents (excluding assets restricted from being exchanged or used to settle a liability for at least 12 months after the balance sheet date).
Current liabilities include:
Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the balance sheet date; and
At the balance sheet date, the Company has no substantive right to defer settlement of liabilities for at least 12 months after the balance sheet date.

Assets and liabilities that are not classified as current are classified as non-current. For the terms of a liability that may be settled by the transfer of the Group's equity instruments at the option of the counterparty, if the Group classifies the option as an equity instrument, the terms and conditions do not affect the liability classification as current or non-current.

(4) Basis of consolidation

The consolidated financial statements include the financial statements of the Company and entities controlled by the Company (subsidiaries). The subsidiaries’ financial statements have been properly adjusted to make the accounting policies consistent with the accounting policies of the Group. In preparing the consolidated financial statements, all inter-company transactions, account balances, gains and losses have been eliminated. The total comprehensive income of the subsidiaries is attributable to owners of the parent and non-controlling interests, even if the non-controlling interests become a loss balance as a result.

See Note 12 and Tables 3 and 4 for more information on subsidiaries’ statements, shareholding ratios, and main business.

(5) Business combination

Business combination is handled in an acquisition method. Acquisition-related costs are recognized in expenses in the period in which the costs are incurred and the services are obtained.

Goodwill is measured with the sum of the fair value of the consideration for the transfer and the fair value of the equity in the acquiree previously held by the acquirer at the acquisition date, less the net amount of identifiable assets acquired and liabilities assumed at the acquisition date.

(6) Foreign currency

When each entity of the Group prepares financial statements, transactions in currencies other than the entity’s functional currency (foreign currencies) are converted into the functional currency at the exchange rate prevailing on the transaction date.

On each balance sheet date, monetary items denominated in foreign currencies are translated at the rates prevailing on that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the year in which they arise.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the rates of exchange prevailing on the transaction dates and are not retranslated.

When the consolidated financial statements are prepared, the assets and liabilities of foreign operations (including subsidiaries operating in a country or using a currency different from that of the Company) were translated into New Taiwan dollars (NTD) at the exchange rate prevailing on each balance sheet date. Income and expense items are translated at the year’s average exchange rate, and the resulting exchange differences are recognized in other comprehensive income.

(7) Inventory

Inventory includes raw materials, work in process, finished goods, and merchandise. The value of inventory shall be determined based on the cost or net realizable value, whichever is lower. The comparison of the cost and net realizable value is based on individual items except for inventory of the same category. The net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. The cost of inventories is calculated using the weighted average method.

(8) Property, plant, and equipment

Property, plant and equipment are recognized at cost and subsequently measured at cost, less accumulated depreciation.

Except for self-owned land, other property, plant and equipment are depreciated on a straight-line basis over their useful lives. Each significant part is depreciated separately. The Group conducts at least an annual review at the end of each year to assess the estimated useful life, residual value, and depreciation methods, and apply the effects of changes in accounting estimates prospectively.

When property, plant and equipment are derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(9) Investment property

Investment property is held to earn rentals or for capital appreciation or both, and it also includes land held for which the future use has not yet been determined.

Investment properties are initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Depreciation of investment properties is recognized on a straight-line basis.

Property, plant and equipment are reclassified into investment property at the carrying amount at the end of self-use.

When investment property is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(10) Goodwill

The cost of goodwill from business combination is the amount of goodwill recognized at the acquisition date and is subsequently measured at cost less accumulated impairment losses.

To test impairment, goodwill is allocated among each cash generating unit or a group of cash generating units (collectively “CGUs”), which is expected to benefit from the synergies of the combination.

The carrying amount and recoverable amount of the CGUs to which goodwill is allocated will be compared every year and whenever there are signs of impairment to test the impairment of the units. If the goodwill allocated to CGUs was obtained from a business combination in the year, the CGUs should be tested for impairment before the end of the year. If the recoverable amount of CGUs to which goodwill is allocated is lower than its carrying amount, the impairment loss is first deducted from the carrying amount of the goodwill of said CGUs. Next, the carrying amount of other assets within said CGUs is deducted from the carrying amount of the goodwill of said CGUs in proportion to the carrying amount of each asset. Any impairment loss is recognized in loss in the current year. Impairment loss of goodwill shall not be reversed subsequently.

(11) Intangible assets

1. Acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost, less accumulated amortization. Intangible assets are amortized using straight-line method over the useful lives. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and amortization methods, while applying the effects of changes in accounting estimates prospectively.

Acquisition through business combination

Intangible assets acquired through business combination are recognized at fair value on the acquisition date and recognized separately from goodwill, and the subsequent measurement method is the same as that of intangible assets acquired separately.

3. Derecognition

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

(12) Impairment of property, plant and equipment, right-of-use assets, investment property and intangible assets

The Group assesses if there are any signs of possible impairment of property, plant, and equipment as well as right-of-use assets, investment property, and intangible assets at each balance sheet date. If there is any sign of impairment, an estimate is made of its recoverable amount. If it is not possible to determine the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs.

The recoverable amount is the fair value less cost of sales or its value in use, whichever is higher. If the recoverable amount of an individual asset or a CGU is lower than its carrying amount, the carrying amount is reduced to the recoverable amount, and the impairment loss is recognized in profit or loss.

When the impairment loss is subsequently reversed, the carrying amount of the asset or the CGU is increased to the revised recoverable amount, provided that the increased carrying amount shall not exceed the carrying amount (less amortization or depreciation) of the asset or the CGU, which was not recognized in impairment loss in prior years. The reversal of the impairment loss is recognized in profit or loss.

(13) Financial instruments

Financial assets and financial liabilities are recognized in the consolidated balance sheet when the Group becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities not at fair value through profit or loss are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss is immediately recognized in profit or loss.

1. Financial assets

Regular trading of financial assets is recognized and derecognized in accordance with trade date accounting.

(1) Measurement types

Financial assets held by the Group are those measured at fair value through profit or loss, financial assets at amortized cost, and investments in equity instruments at fair value through other comprehensive income.

A. Financial assets at fair value through profit or loss

Financial assets measured at fair value through profit or loss are those mandatorily measured at fair value through profit or loss and those designated as at fair value through profit or loss. Financial assets mandatorily measured at fair value through profit or loss include investments in equity instruments that are not designated by the Company to be measured at fair value through other comprehensive income.

Financial assets measured at fair value through profit or loss are recognized at fair value. Dividend and interest income are recorded under other income and interest income, respectively, while gains or losses from remeasurement are recognized under other gains and losses. Please refer to Note 32 for the method of determining fair values.

B. Financial assets at amortized cost

If the Group invests in financial assets in alignment with both of the following two criteria, such assets are classified as financial assets measured by amortized cost:

a. Held under a certain business model, of which the objective is to collect contractual cash flows by holding the financial assets; and
b. The cash flows on specific dates specified in the contractual terms are solely payments of the principal and interest on the principal amount outstanding.

Such assets (including cash and cash equivalents, notes receivable at amortized cost, accounts receivable, other receivables, and pledged time deposits) are measured at the amortized cost of the total carrying amount determined by the effective interest method less any impairment loss after initial recognition; and any foreign currency exchange gains or losses are recognized in profit or loss.

Interest income is calculated by multiplying the effective interest rate by the total carrying amount of financial assets.

Cash equivalents include time deposits, highly liquid and readily convertible into a fixed amount of cash at any time while featuring little risk of value changes, which are used to meet short-term cash commitments.

Demand deposits that are restricted from use under contracts with third parties are also cash, unless such restrictions change the nature of the deposit, and make it no longer conform to the definition of cash. If the contract restricts the use of demand deposits for more than 12 months after the balance sheet date, the relevant amount is classified as non-current assets.

C. Investments in equity instruments at fair value through other comprehensive income

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at fair value through other comprehensive income. Designation as at fair value through other comprehensive income is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at fair value through other comprehensive income are measured at fair value with the subsequent movements in the fair value recognized in other comprehensive income and accumulated in other equity. Upon the disposal of an investment, the cumulative profit or loss is directly reclassified to retained earnings and is not reclassified to profit or loss.

Dividends on such investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the investment cost.

(2) Impairment of financial assets

The Group assesses the impairment loss of financial assets at amortized cost (including accounts receivable) based on the expected credit loss at each balance sheet date.

An allowance for losses on accounts receivable is recognized based on expected credit loss over the duration of the receivables. Other financial assets are first assessed based on whether the credit risk has increased significantly since the initial recognition. If there is no significant increase in the risk, the impairment is recognized in allowance for losses in an amount equal to 12-month expected credit loss. If the risks have increased significantly, the impairment is recognized in allowance for losses at an amount equal to lifetime expected credit loss.

The expected credit loss refers to the weighted average credit loss with the risk of default as the weight. The 12-month expected credit loss represents the expected credit loss from possible defaults of a financial instrument within 12 months after the reporting date. The lifetime expected credit loss represents the expected credit loss from all possible

defaults in a financial instrument over the expected life of a financial instrument.

All impairment losses on financial assets are reduced to their carrying amounts through an allowance account for losses.

(3) Derecognition of financial assets

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

Upon derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the consideration received is recognized in profit or loss. When an investment in equity instruments at fair value through other comprehensive income is derecognized in its entirety, the cumulative profit or loss is transferred directly to retained earnings and not reclassified to profit or loss.

2. Equity instruments

Debt and equity instruments issued by the Group are classified as either financial liabilities or equity as per the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments.

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

The repurchase of the Group’s own equity instruments is recognized in and deducted directly from equity. The purchase, sale, issuance, or cancellation of the Group’s own equity instruments is not recognized in profit or loss.

Financial liabilities
(1) Subsequent measurement

All the Company’s financial liabilities are measured at amortized cost in the effective interest method, except for the following.

A. Financial liabilities Measured at Fair Value Through Profit or Loss

Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading.

Financial liabilities held for trading are measured at fair value, and any gains or losses on such financial liabilities are recognized in other gains or losses.

Please refer to Note 32 for the method of determining fair values.

(2) Derecognition of financial liabilities

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

4. Convertible corporate bonds

The components of the compound financial instruments (convertible corporate bonds) issued by the Group are classified as financial liabilities and equity, respectively, at the time of initial recognition based on the substance of the contractual agreements and the definitions of financial liabilities and equity instruments.

At the time of initial recognition, the fair value of a liability component is estimated at the real-time market interest rate for similar non-convertible instruments and measured at amortized cost using the effective interest method before conversion or the maturity date. Liability components that are embedded non-equity derivatives are measured at fair value.

The right to convert bonds classified as equity is equal to the remaining amount of the total fair value of the compound instruments, less the separately determined fair value of each liability component, which is recognized as equity after the effect of income tax is deducted and is not subsequently measured. When the right to convert bonds is exercised, its components of liabilities and the amount of equity will be reclassified as share capital and capital surplus - stock issuance premium. If the right to convert the convertible corporate bonds has not been exercised on the maturity date, the amount recognized in equity will be reclassified as capital surplus - stock issuance premium.

The transaction costs related to the convertible corporate bonds issued are allocated to the components of liabilities (included in the carrying amounts of liabilities) and components of equity (included in equity) of the instruments in proportion to the total price.

(14) Provisions

The amount recognized in provisions is based on the risk and uncertainty of the obligation, and is the best estimate of the expenditure required to settle the obligation on the balance sheet date. The provisions are measured at the discounted value of the estimated cash flows to settle the obligations.

(15) Revenue recognition

After the Group identifies its performance obligations in contracts with clients, it allocates the transaction costs to each obligation in the contracts and recognizes revenue upon completion of performance obligations.

Merchandise sales revenue

The merchandise sales revenue is from the sales of integrated circuits (ICs). As the merchandise arrives at/is delivered to the location designated by a client based on different transaction terms, the client has the right to set the price and use the merchandise and assume the main responsibility for reselling the merchandise, while bearing the risk of obsolescence of the merchandise, upon which the Group recognizes it in revenue and accounts receivable. Advance receipts from the merchandise sales are recognized in contract liabilities before the merchandise is delivered.

(16) Leasing

The Group assesses whether a contract belongs to (or contains) a lease on the date of establishment of the contract.

The Group as a lessor

Where almost all the risks and rewards attached to the ownership of an asset are transferred to the lessee in lease terms, such leases are classified as finance leases. All other leases are classified as operating leases.

When the Group subleases the right-of-use assets, the right-of-use assets (not the asset itself) are used to determine the classification of the sublease. However, if the main lease is a short-term lease for which the recognition exemption applies to the Group, the sublease is classified as an operating lease.

Under finance leases, lease payments include fixed payments. The net lease investment is measured at the lease receivables and presented as financial lease receivables. Finance income is allocated to each accounting period to reflect the fixed rate of return on the Group's net investment in a lease that has not expired in each period.

Under operating leases, lease payments, less lease incentives, are recognized in income on a straight-line basis over the relevant lease terms.

The Group as a lessee

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

The right-of-use assets are initially measured at cost (including the initially measured amount of the lease liability) and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, and the remeasurement of the lease liability is adjusted. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated on a straight-line basis from the lease commencement date to the end of the useful life or the end of the lease term, whichever is earlier.

The lease liability is initially measured at the present value of the lease payment (including fixed payments). If the interest rate implicit in a lease can be easily determined, the lease payment is discounted at such an interest rate. If the interest rate cannot be easily determined, the lessee's incremental borrowing rate applies.

Subsequently, lease liabilities are measured at the amortized cost using the effective interest rate method, and interest expense is amortized over the lease term. If changes during the lease term or the index or rate used to determine lease payments lead to changes in future lease payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as a separate lease, remeasurement of the lease liabilities due to the reduced scope of the lease is to reduce the right-of-use assets and to account for the profit or loss on the partial or full termination of the lease; the remeasurement of the lease liabilities due to other modifications is to adjust the right-of-use assets. Lease liabilities are presented on a separate line in the consolidated balance sheets.

The variable rent in a lease arrangement that is not dependent on the index or rate is recognized in income in the period, in which it is incurred.

(17) Borrowing costs

Borrowing costs are recognized in profit or loss in the year, in which they are incurred.

(18) Employee benefits

1. Short-term employee benefits

Relevant liabilities for short-term employee benefits are measured by the non-discounted amount expected to be paid in exchange for employee services.

2. Retirement benefits

For pension under the defined contribution plan, the amount of pension contributed is recognized in expenses during employees' service period.

The defined benefit cost under the defined benefit pension plan (including service cost, net interest, and remeasurement) is calculated based on the projected unit credit method. Current service costs and net interest on net defined benefit liabilities are recognized in employee benefit expenses when incurred. The remeasurement (including actuarial gains and losses and plan asset remuneration net of interest) is recognized in other comprehensive income and listed in retained earnings when it occurs, and will not be reclassified to profit or loss after the balance sheet date.

The net defined benefit liabilities are the deficit of the defined benefit pension plan.

(19) Share-based payment arrangement

Employee stock options and restricted stock awards are recognized in expenses at the fair values of the equity instruments on the grant date and the best estimate of the number of equity instruments that will vest during the vesting period on a straight-line basis, while “capital surplus - employee stock options and other equity” is adjusted accordingly (unearned employee compensation). If it is immediately vested on the grant date, the full amount is recognized in expenses on the grant date. The Group transfers treasury shares to employees, and the date of approval by the Board of Directors is adopted as the grant date.

When the Group issues restricted stock awards, it recognizes them in other equity (unearned employee compensation) on the grant date, while “capital surplus - restricted stock awards” is adjusted accordingly.

On each balance sheet date, the Group revises the estimated number of employee stock options and restricted stock awards that are expected to be vested. In the case of a revision to the original estimated number, the effect is recognized in profit or loss, so that the cumulative expenses can reflect the revised estimate, while “capital surplus - employee stock options” and “capital surplus - restricted stock awards” are adjusted accordingly.

(20) Income tax

Income tax expense is the sum of the current income tax and deferred income

tax.

Income tax expenses in the current period

The Group determines the current income (loss) in accordance with the laws and regulations formulated by the authority in the jurisdiction to which an income tax turn should be filed and calculates the payable (recoverable) income tax accordingly.

A surtax is imposed on the undistributed earnings pursuant to the Income Tax Act of R.O.C. is recognized via the resolution at the annual shareholders' meeting.

Adjustment to income tax payable from prior years are recognized in the current income tax.

2. Deferred tax

Deferred tax is calculated based on the temporary differences between the carrying amount of assets and liabilities and the corresponding tax bases used in the computation of taxable income.

All taxable temporary differences are generally in deferred tax liabilities, and deferred tax assets are accounted for when there are likely to be taxable income to deduct temporary differences and research and development expenses.

Taxable temporary differences associated with investments in subsidiaries are recognized in deferred liabilities, except where the Group is able to control the reversal of the temporary difference and it is probable that said temporary difference will not be reversed in the foreseeable future. The deductible temporary differences related to said investments are recognized as deferred income tax only if it is probable that there will be sufficient taxable income against which to utilize the benefits of the temporary differences, and they are expected to be reversed in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at each balance sheet date, and its carrying amount will be increased as it has become probable that future taxable income will allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates in the period in which the liabilities are expected to be settled or assets realized, based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would ensue in a manner expected by the Group at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

3. Current and deferred tax

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

5. Significant Accounting Judgments and Estimations, and Main Sources of Assumption Uncertainties

When adopting accounting policies, the Group is required to make judgments, estimates and assumptions that are based on historical experience and other factors that are not readily apparent from other sources. Actual results may differ from the estimates.

The Group, when developing significant accounting estimates, has included inflation and market interest rate fluctuations in cash flows estimation, growth rates, discount rates, and profitability. The management team will continue to review such estimates and underlying assumptions.

After the accounting policies, estimates and basic assumptions adopted by the consolidated company are assessed by the management, there is no significant accounting judgment, estimate or assumption uncertainty.

6. Cash and Cash Equivalents

Cash and Cash Equivalents
December 31,2024 December 31,2023 Cash on hand and working capital $ 347 $ 345 Bank checking accounts and demand deposits 531,562 397,424 Cash equivalent Bank time deposits 213,176 695,273 Commercial paper 129,477 118,333 Repurchase agreements collateralized by bonds - 30,700 $ 874,562 $ 1,242,075 The interest rate ranges of bank deposits at the balance sheet date are as follows: December 31,2024 December 31,2023 Cash in banks 0.001%~1.450% 0.001%~1.450% Time deposits 1.225%~5.650% 1.155%~5.650% Commercial paper 1.340%~4.850% 5.550%~5.650% Repurchase agreements collateralized by bonds - 5.550% Financial Instruments Measured at Fair Value Through Profit or Loss December 31,2024 December 31,2023 Financial assets–current Measured at fair values through profit and/or loss Non-derivative financial assets - Domestic listed stocks $ 771,858 $ 335,314 - Fund beneficiary certificates - 174,119 $ 771,858 $ 509,433 Financial assets–non-current Measured at fair values through profit and/or loss Non-derivative financial assets - Privately offered funds $ 79,352 $ 80,212 - Domestic non-listed stocks 3,419 451 $ 82,771 $ 80,663 Financial liabilities-current Held for trading Derivatives (not designated as hedging) - Value of right to redeem convertible corporate bonds (Note 20) $ 2,310 $ 110	December 31,2023
	0.001%~1.450% 1.155%~5.650% 5.550%~5.650% 5.550% December 31,2023
Financial assets–current Measured at fair values through profit and/or loss Non-derivative financial assets - Domestic listed stocks - Fund beneficiary certificates Financial assets–non-current Measured at fair values through profit and/or loss Non-derivative financial assets - Privately offered funds - Domestic non-listed stocks Financial liabilities-current Held for trading Derivatives (not designated as hedging) - Value of right to redeem convertible corporate bonds (Note 20)
		$ 335,314 174,119 $ 509,433 $ 80,212 451 $ 80,663 $ 110

7. Financial Instruments Measured at Fair Value Through Profit or Loss

8. Financial assets measured at fair value through other comprehensive income

Equity investment

Equity investment
Current Domestic Investment Listed stocks Non-current Domestic Investment Non-listed stocks Foreign investment Non-listed stocks	December 31,2024 $ 550,956 $ 38,379 31,910 $ 70,289	December 31,2023
			$ 468,486 $ 38,189 29,885 $ 68,074

The Group invests in domestic companies’ ordinary shares for medium- and long-term strategic purposes and expects to make profits in the long-term. The management of the Group holds that the short-term fluctuation in the fair value of these investments shall be recognized as income or loss and is not congruent with the aforementioned long-term investment plan; therefore, they chose to designate these investments as financial assets measured at fair value through other comprehensive income.

9. Financial assets at amortized cost

income. Financial assets at amortized cost
Current Time deposits with the initial duration of more than 3 months Commercial paper Non-current Domestic Investment Certificates of deposit pledged	December 31,2024 $ 111,850 202,435 $ 314,285 $ 15,405	December 31,2023
			$ 238,441 38,692 $ 277,133 $ 10,401

(1) As of December 31, 2024 and 2023, the interest rate ranges of time deposits with the initial duration of more than three months, commercial paper, and certificate of deposit pledged are as follows:

deposit pledged are as follows:
Time deposits with the initial duration of more than 3 months Commercial paper Certificates of deposit pledged	December 31,2024 1.700%~4.906% 1.360%~4.900% 1.450%~1.700%	December 31,2023
		1.575%~5.500% 5.550%~5.600% 1.450%~1.575%

(2) Please refer to Note 32 for information on credit risk management and impairment assessment related to financial assets measured at amortized cost.
(3) Please refer to Note 34 for information on financial assets measured at amortized cost pledged.
Notes receivable, accounts receivable and other receivables

Notes receivable From operations Total book value Less: Allowance for losses Accounts receivable Measured at amortized cost Total book value Less: Allowance for losses Other receivables Receivable from disposal of investments Tax refund receivable Stock dividends receivable Others	December 31,2024 $ 13,034 ( 8) $ 13,026 $ 1,013,556 ( 508) $ 1,013,048 $ 60,575 13,714 260 1,466 $ 76,015	December 31,2023	December 31,2023
	( (	( (	$ 13,580 6) $ 13,574 $ 923,709 455) $ 923,254 $ - 3,516 90 3,200 $ 6,806

The Group’s average credit period for commodity sales is net 15 to 150 days after the end of each month, without interest accrued on accounts receivable. To reduce the credit risk, the Group, before working with each new client, fills out a credit application form through a business unit, and the responsible reviews the form and has the form countersigned by relevant units, while evaluating the potential client’s credit quality to set its credit limit. The client’s credit limit and rating are reviewed or updated from time to time every year with reference to its operating performance, transaction amount, time, and other factors. In addition, the Group will review the recoverable amount of receivables on each balance sheet date to ensure that appropriate impairment loss has been appropriated for the uncollectible receivables. Accordingly, the Group’s management believes that the Group’s credit risk is significantly reduced.

The Group recognizes an allowance for losses on accounts receivable based on expected credit loss over the duration of the receivables. Lifetime expected credit losses are calculated using a provision matrix based on each client’s past default record, current financial position, economic situation in the industry, and industry outlook. Since the Group’s credit loss history shows that there is no significant difference in the loss patterns of different customer groups, therefore, instead of further differentiating the customer groups, the provision matrix only sets the expected credit loss rate based on the number of days overdue on accounts receivable.

If there is evidence that the counterparty is in serious financial difficulty and the Group cannot reasonably expect to recover the amount, the Group shall directly write off the related accounts receivable but shall engage in recourse activities and recognize the amount recovered in profit or loss as a result of the recourse.

The allowance for losses on notes and accounts receivable measured by the Group as per the provision matrix is as follows:

December 31, 2024

Total book value Allowance for loss (expected credit loss of the given duration) Measured at amortized cost		Not overdue		Past due by 1–30 days		Past due by 31–60 days		Past due by 61–90 days		Past due by 91–120 days	P	ast due by 121 days or more		Total
	(	$1,003,705 479) $1,003,226	(	$ 11,291 33) $ 11,258	(	$ 11,575 4) $ 11,571		$ 6 - $ 6		$ 13 - $ 13		$ - - $ -	(	$1,026,590 516) $1,026,074

December 31, 2023

Total book value Allowance for loss (expected credit loss of the given duration) Measured at amortized cost		Not overdue		Past due by 1–30 days		Past due by 31–60 days		Past due by 61–90 days		Past due by 91–120 days	P	ast due by 121 days or more		Total
	(	$ 913,160 435) $ 912,725	(	$ 15,994 25) $ 15,969	(	$ 8,124 1) $ 8,123		$ 11 - $ 11		$ - - $ -		$ - - $ -	(	$ 937,289 461) $ 936,828

The information on the movement in the allowances for losses on notes and accounts receivable is as follows:

Opening balance Add: Impairment loss recognized during this year Ending balance		2024 $ 461 55 $ 516		2023
				$ 281 180 $ 461

11. Inventory

Merchandise Finished goods Work in process Raw materials	December 31,2024 $ 172,632 296,704 310,159 40,954 $ 820,449	December 31,2023	December 31,2023
			$ 223,578 208,805 257,671 99,605 $ 789,659

The components of operating costs related to inventories are as follows:

Operating costs Losses on inventory valuation loss and obsolescence (gains on inventory value recovery)		2024 $ 2,172,134 $ 24,564)		2023
	(			$ 2,103,785 $ 93,252

The gains on inventory valuation loss and obsolescence (gains on inventory value recovery) were due to the decrease in the balance of inventory write-down loss after the write-down of some of the inventories.

12. Subsidiary

(1) Subsidiaries included in the consolidated financial statements

Entities covered by the consolidated financial statements are as follows:

Investor name	Subsidiaryname	Business nature	Shareholding	Shareholding	Description
			December 31,2024	December 31,2023
The Company Weltrend International Co., (BVI) Ltd. Sentelic Corporation	Weltrend International Co., (BVI) Ltd. Yingquan Investment Co., Ltd. Sentelic Corporation Dongguan Prosil Electronics Co., Ltd. Sentelic Holding Co., Ltd.	Investment Investment Integrated circuit development and design, analog circuit design, digital signal processing, application software development, and import and export of electronic components. Import and export of electronic components and general import and export Investment	100% 98% 51% 100% 100%	100% 98% 51% 100% 100%	`－` `－` `－` `－` `－`

(2) Information on subsidiaries with material non-controlling interests

Subsidiaryname Sentelic Corporation	Shareholding and percentage of voting rights held bynon-controllinginterests	Shareholding and percentage of voting rights held bynon-controllinginterests
	December 31,2024 49%	December 31,2023
		49%

Please refer to Table 3 for the information on the principal places of business and countries of incorporation.

Subsidiaryname Sentelic Corporation	Profit or loss allocated to non-controllinginterests 2024 2023 $ 19,278 ( $ 2,808 )	Non-controllinginterests	Non-controllinginterests
	2024	December 31, 2024 $ 556,454	December 31, 2023
	$ 19,278		$ 566,430

The summarized financial information of the subsidiaries below is prepared based on the transactions between companies before the elimination of the information and is adjusted according to the impacts arising from the acquisition method when the Company made acquisitions:

Sentelic Corporation

Sentelic Corporation
Current assets Non-current assets Current liabilities Non-current liabilities Equity	December 31,2024 $ 804,097 1,038,340 ( 138,646 ) ( 124,447) $ 1,579,344	December 31,2023
		$ 699,828 1,100,221 ( 74,729 ) ( 125,630) $ 1,599,690

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from previous page)
Equity attributable to: Owners of the parent Non-controlling interests of Sentelic Corporation Operating revenues Net income (loss) for the year Other comprehensive income Total comprehensive income Net income attributable to: Owners of the parent Non-controlling interests of Sentelic Corporation Comprehensive income attributable to: Owners of the parent Non-controlling interests of Sentelic Corporation Cash flows Operating activities Investing activities Financing activities Net cash inflow (outflow)	December 31,2024 $ 1,022,890 556,454 $ 1,579,344 2024 $ 465,932 $ 39,409 289 $ 39,698 $ 20,131 19,278 $ 39,409 $ 20,279 19,419 $ 39,698 $ 81,258 ( 39,212 ) (30,337) $ 11,709	December 31,2023
			$ 1,033,260 566,430 $ 1,599,690 2023

			$ 422,135 ( $ 5,697 ) ( 23) ($ 5,720) ( $ 2,889 ) ( 2,808) ($ 5,697) ( $ 2,901 ) ( 2,819) ($ 5,720) $ 124,945 ( 113,122 ) (85,654) ($ 73,831)

13. Property, plant, and equipment

Costs Balance at January 1, 2024 Addition Disposal Net exchange differences Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Depreciation expenses Disposal Net exchange differences Balance at December 31, 2024 Net as of December 31, 2024		Land		Buildings	Machinery equipment	Transportation equipment	Leasehold improvements	Miscellaneous equipment $ 24,943 4,972 ( 1,474 ) 51 $ 28,492 $ 20,260 2,382 ( 1,468 ) 41 $ 21,215 $ 7,277	Total
		$ 94,720 - - - $ 94,720 $ - - - - $ - $ 94,720		$ 94,714 - - - $ 94,714 $ 47,489 2,282 - - $ 49,771 $ 44,943	$ 284,649 19,380 ( 11,479 ) - $ 292,550 $ 239,910 28,981 ( 11,479 ) - $ 257,412 $ 35,138	$ 30,925 3,997 ( 7,985 ) - $ 26,937 $ 20,284 3,931 ( 6,170 ) - $ 18,045 $ 8,892	$ 62,073 - ( 3,811 ) - $ 58,262 $ 50,175 4,798 ( 3,811 ) - $ 51,162 $ 7,100		$ 592,024 28,349 ( 24,749 ) 51 $ 595,675 $ 378,118 42,374 ( 22,928 ) 41 $ 397,605 $ 198,070

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Costs Balance at January 1, 2023 Addition Reclassified as investment property Disposal Net exchange differences Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Depreciation expenses Reclassified as investment property Disposal Net exchange differences Balance at December 31, 2023 Net as of December 31, 2023		Land	Buildings	Machinery equipment	Transportation equipment	Transportation equipment	Leasehold improvements	Leasehold improvements	Miscellaneous equipment	Total
		$ 94,720 - - - - $ 94,720 $ - - - - - $ - $ 94,720	$ 154,585 249 ( 60,120 ) - - $ 94,714 $ 51,931 4,409 ( 8,851 ) - - $ 47,489 $ 47,225	$ 338,697 16,738 - ( 70,786 ) - $ 284,649 $ 276,979 33,717 - ( 70,786 ) - $ 239,910 $ 44,739		$ 30,925 - - - - $ 30,925 $ 16,309 3,975 - - - $ 20,284 $ 10,641		$ 62,073 - - - - $ 62,073 $ 45,174 5,001 - - - $ 50,175 $ 11,898	$ 35,479 1,723 - ( 12,242 ) ( 17) $ 24,943 $ 30,426 2,089 - ( 12,242 ) ( 13) $ 20,260 $ 4,683	$ 716,479 18,710 ( 60,120 ) ( 83,028 ) ( 17) $ 592,024 $ 420,819 49,191 ( 8,851 ) ( 83,028 ) ( 13) $ 378,118 $ 213,906

As there was no sign of impairment during the years ended December 31, 2024 and 2023, the Group did not conduct an impairment assessment.

Depreciation expenses are calculated and recognized on a straight-line basis as per the useful lives below:

useful lives below:	useful lives below:	useful lives below:
Buildings Plant main building 35 to 50 years Interior design and network engineering 5 years Machinery equipment 2 to 6 years Transportation equipment 5 to 6 years Leasehold improvements 5 to 10 years Miscellaneous equipment 3 to 6 years Refer to Note 34 for the amounts of land and buildings pledged as collateral for borrowings. Investment property Buildings Costs Balance at January 1 and December 31, 2024 $ 60,120 Accumulated depreciation Balance at January 1, 2024 $ 9,912 Depreciation expenses 3,185 Balance at December 31, 2024 $ 13,097 Net as of December 31, 2024 $ 47,023
		$ 60,120 $ 9,912 3,185 $ 13,097 $ 47,023

Refer to Note 34 for the amounts of land and buildings pledged as collateral for borrowings.

Investment property

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Costs Balance at January 1, 2023 From property, plant and equipment Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 From property, plant and equipment Depreciation expenses Balance at December 31, 2023 Net as of December 31, 2023		Buildings
		$ - 60,120 $ 60,120 $ - 8,851 1,061 $ 9,912 $ 50,208

The lease term for investment property is three years. The lessee does not have the preferential right to purchase the investment property at the end of the lease term.

The total lease payments to be received in the future from leasing out investment property under an operating lease are as follows:

The 1st year The 2nd year The 3rd year	December 31,2024 $ 2,640 1,760 - $ 4,400	December 31,2023	December 31,2023
			$ 2,640 2,640 1,760 $ 7,040

Investment property are calculated and recognized on a straight-line basis as per the useful lives below:

s below:
Buildings
Plant main building	35 to 50 years
Interior design and network
engineering	5 years

The fair value of investment property is not valuated by an independent valuator and only measured by the Company's management using Level 3 inputs with a valuation model commonly used by market participants. Regarding the valuation, a cash flow approach is adopted, and the important unobservable inputs used include the discount rates; the fair value from the valuation is as follows:

value from the valuation is as follows:
Fair value	December 31,2024 $ 82,352	December 31,2023
			$ 83,499

15. Lease agreements

(1) Right-of-use assets

agreements Right-of-use assets
Carrying amount of right-of-use assets Buildings Addition of right-of-use assets Depreciation expenses of right-of-use assets Buildings	December 31,2024 $ 49,200 2024 $ 22,502 $ 20,898	December 31,2023
			$ 48,314 2023
			$ 39,606 $ 20,750

Except for the additions and depreciation expenses recognized listed above, the Group did not have any significant sublease or impairment of the right-of-use assets during the years ended December 31, 2024 and 2023.

(2) Lease liability

during the years ended December 31, Lease liability	2024 and 2023.
Carrying amount of lease liability Current Non-current The discount rate range for lease Buildings	December 31,2024 $ 18,570 $ 31,321 liabilities is as follows: December 31,2024 1.7576%~2.25%	December 31,2023
		$ 17,341 $ 31,519 December 31,2023
		1.7576%~2.25%

(3) Major lease activities and terms

The Company leased buildings from the Hsinchu Science Park of the Ministry of Science and Technology as plants, and the lease period is from 2022 to 2026. As per the lease agreement of the plants located in the science park, the lessee may have the amount of the rent adjusted at any time at the announced land price of the site where the plants are located or the adjusted rent rate of state-owned land approved by the Executive Yuan. The Company has no bargain purchase option for the leased buildings at the end of the lease term.

(4) Other lease information

buildings at the end of the lease term. Other lease information
Short-term lease expenses Total cash (outflow) from lease		2024 $ 354 $ 22,023)		2023
	(		(	$ 457 $ 21,922)

The Group has elected to apply the recognition exemptions to the leases of buildings that qualify as short-term leases and does not recognize the relevant right-of-use assets and lease liabilities for such leases.

16. Goodwill

Goodwill
Costs Beginning and ending balance	2024 $ 447,603	2023
		$ 447,603

The Group acquired Sentelic Corporation in August 2022 with 51% of its equity acquired, leading to goodwill of NT$447,603 thousand, mainly due to the benefits brought about by the expected growth of operating income from the product. There was no significant impairment measured based on fair value.

17. Intangible assets

Intangible assets
Costs Balance at January 1, 2024 Acquired separately Disposal Net exchange differences Balance at December 31, 2024 Accumulated amortization Balance at January 1, 2024 Amortization expenses Disposal Net exchange differences Balance at December 31, 2024 Net as of December 31, 2024 Costs Balance at January 1, 2023 Acquired separately Disposal Net exchange differences Balance at December 31, 2023 Accumulated amortization Balance at January 1, 2023 Amortization expenses Disposal Net exchange differences Balance at December 31, 2023 Net as of December 31, 2023	Computer software $ 257,600 26,865 ( 18,723 ) 8 $ 265,750 $ 235,865 25,938 ( 18,723 ) 5 $ 243,085 $ 22,665 $ 236,185 31,187 ( 9,769 ) ( 3) $ 257,600 $ 211,092 34,545 ( 9,769 ) ( 3) $ 235,865 $ 21,735		Technology licensing $ 79,316 7,370 - - $ 86,686 $ 78,176 5,924 - - $ 84,100 $ 2,586 $ 75,189 4,127 - - $ 79,316 $ 73,713 4,463 - - $ 78,176 $ 1,140		Patents $ 588,467 - - - $ 588,467 $ 88,792 58,944 - - $ 147,736 $ 440,731 $ 588,467 - - - $ 588,467 $ 29,362 59,430 - - $ 88,792 $ 499,675		Customer relations $ 137,783 - - - $ 137,783 $ 18,857 14,143 - - $ 33,000 $ 104,783 $ 137,783 - - - $ 137,783 $ 4,714 14,143 - - $ 18,857 $ 118,926	Total
								$ 1,063,166 34,235 ( 18,723 ) 8 $ 1,078,686 $ 421,690 104,949 ( 18,723 ) 5 $ 507,921 $ 570,765 $ 1,037,624 35,314 ( 9,769 ) ( 3) $ 1,063,166 $ 318,881 112,581 ( 9,769 ) ( 3) $ 421,690 $ 641,476

Except for additions, disposals, and the recognition of amortization expenses, there were no significant impairments of intangible assets for the Group during the years ended December 31, 2024 and 2023. The patents and customer relations acquired through the business combination are recognized in amortization expenses based on the useful lives identified in the valuation report.

Amortization expense is provided for based on a straight-line method over the following useful lives:

ul lives:
Computer software	1 to 5 years
Technology licensing	1 years
Patents	7 to 10 years
Customer relations	5 to 10 years

18. Prepayments

Prepayments
Current Prepayments for reticles Tax overpaid retained for offsetting the future tax payable Prepayments for salary and wages Others	December 31,2024 $ 21,004 6,435 1,250 3,913 $ 32,602	December 31,2023
			$ 26,599 3,412 1,370 2,622 $ 34,003

19. Short-term borrowings

Short-term borrowings
Unsecured borrowings Credit facility borrowings	December 31,2024 $ 135,618	December 31,2023
			$ 150,000

The interest rates on bank revolving loans were 0.5%–3.2% and 1.803%–1.86% as at December 31, 2024 and 2023, respectively.

20. Corporate bonds payable

December 31, 2024 and 2023, respectively. Corporate bonds payable
Domestic unsecured convertible corporate bonds Less: Discount of corporate bonds payable Less: portion due within one year Value of redemption right Value of conversion right	December 31,2024 $ 1,099,900 ( 37,395 ) (1,062,505) $ - $ 2,310 193,676	December 31,2023
		$ 1,099,900 ( 58,891 ) - $ 1,041,009 $ 110 193,676

The Company issued 11,000 NTD-denominated unsecured convertible corporate bonds with a coupon rate of 0% on September 11, 2023, with the total principal amounting to NT$1,100,000 thousand. From the day following the end of three months after the date such bonds were issued (December 12, 2023) to the maturity date (September 11, 2026), the bondholders may request the Company to convert the convertible corporate bonds into ordinary shares of the Company at a price of NT$61.2 per share; or request the Company to redeem the convertible corporate bonds held by them in cash at the face value of the bonds, plus interest compensation [100.500625% of the face value (real return: 0.25%)] at least 40 days before two full years after issuance (September 11, 2025). The Company may redeem all bonds early at the face value of the bonds when the closing price of the Company’s common stock exceeds the current conversion price by 30% or above for 30 consecutive business days from the day following the end of three full months after the convertible corporate bonds were issued (December 12, 2023) through 40 days before the end of the issuance period (August 2, 2026). As of December 31, 2024, the conversion price was adjusted to NT$60.1 per share.

The convertible corporate bonds include components of liabilities and equity. The components of equity are recognized in capital surplus- stock options under equity. The effective interest rate for the components of liabilities initially recognized was 2.06322%.

Issuance price (less transaction cost of NT$5,000
thousand)		$ 1,228,652
Value of redemption right (less transaction cost of NT$1
thousand)	(	329 )
Components of equity (less transaction cost of NT$788
thousand)	(	193,693)
Components of liabilities on the issuance date (less
transaction cost of NT$4,211 thousand)		1,034,630
Interest calculated at the effective interest rate of
2.06322%		27,969
Conversion of corporate bonds payable into common
shares	(	94)
Components of liabilities on December 31, 2024		$ 1,062,505

21. Notes payable and accounts payable

Notes payable and accounts payable
Notes payable- from operations Accounts payable- from operations	December 31,2024 $ 579 $ 329,682	December 31,2023
			$ 629 $ 232,687

The Group has a financial risk management policy to ensure that all payables are repaid within the pre-agreed credit period.

22. Other liabilities

22.	Other liabilities
23.	Current Other payables Investment payables Salary and wages and bonuses payable Pension payable under new scheme Health insurance premiums payable Labor insurance premiums payable Service fee payable Others Other liabilities Collection on behalf of others Contract liabilities Non-current Other liabilities Guarantee deposits received Provisions Current Employee benefits	December 31,2024 $ 90,582 66,423 5,044 2,822 2,705 1,860 7,464 $ 176,900 $ 4,162 2,814 $ 6,976 $ 440 December 31,2024 $ 8,634	December 31,2023
			$ 10,253 46,738 4,849 2,709 2,629 1,500 6,386 $ 75,064 $ 4,043 2,854 $ 6,897 $ 440 December 31,2023
				$ 12,207

Provision for employee benefit liabilities is an estimate of employees’ leave entitlements.

24. Retirement benefit plans

(1) Defined contribution pension plan

The Group adopted a pension scheme under the Labor Pension Act, which is a government-managed defined contribution plan. Under the act, the Company makes monthly contributions, equal to 6% of their monthly salary and wages, to employees’ individual pension accounts under the Bureau of Labor Insurance.

(2) Defined benefit plan

The pension system of the Company and Sentelic Corporation in the Group is in accordance with the Labor Standards Act and is a government-administered defined benefit pension plan. The payment for employee pensions is calculated based on the length of service and the average salary in the six months prior to the approved retirement date. The Group makes a contribution, equal to 2% of the total monthly employee salaries, which is deposited by the Supervisory Committee of Labor Retirement Reserve in the pension account with the Bank of Taiwan in the name of

the committee. Before the end of each year, if the balance in the pension account is inadequate to pay for the retirement benefits to employees who meet the retirement requirements in the following year, the Group will make a contribution to make up for the difference in a lump sum by the end of March of the following year. The pension account is managed by the Bureau of Labor Funds, Ministry of Labor; the Group has no right to influence its investment management strategy.

The amounts included in the consolidated balance sheets in respect of such defined benefit plans are as follows:

defined benefit plans are as follows:
Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability	December 31,2024 $ 133,384 (102,820) $ 30,564	December 31,2023
	(	(	$ 133,444 81,159) $ 52,285

The movements in the net defined benefit liability are as follows:

January 1, 2024 Service costs Interest expense (income) Recognized in profit or loss Remeasurement Return on plan assets (except for the amount included in the net interest) Actuarial gain - changes in financial assumptions Actuarial loss - experience adjustments Recognized in other comprehensive income Employer’s contributions Benefit payment December 31, 2024 January 1, 2023 Service costs Settlement profit or loss Interest expense (income) Recognized in profit or loss Remeasurement Return on plan assets (except for the amount included in the net interest)	Present value of defined benefit obligations $ 133,444 1,362 1,642 3,004 - ( 2,334 ) 511 ( 1,823) - ( 1,241) $ 133,384 $ 134,664 1,330 ( 4,375 ) 1,945 ( 1,100) -	Fair value of plan assets ($ 81,159) - ( 1,025) ( 1,025) ( 7,224 ) - - ( 7,224) ( 14,653) 1,241 ($ 102,820) ($ 79,769) - 4,323 ( 1,210) 3,113 ( 380 )	Net defined benefit liability	Net defined benefit liability
	( ( ( ( (	( ( ( ( ( ( ( ( ( (	( ( ( ( ( (	$ 52,285 1,362 617 1,979 7,224 ) 2,334 ) 511 9,047) 14,653) - $ 30,564 $ 54,895 1,330 52 ) 735 2,013 380 )

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Actuarial loss - changes in financial assumptions Actuarial gain - experience adjustments Recognized in other comprehensive income Employer’s contributions Benefit payment December 31, 2023	Present value of defined benefit obligations $ 2,273 ( 1,289) 984 - ( 1,104) $ 133,444	Fair value of plan assets $ - - ( 380) ( 5,227) 1,104 ($ 81,159)	Net defined benefit liability	Net defined benefit liability
	( (	( ( (	( (	$ 2,273 1,289) 604 5,227) - $ 52,285

Investment risk: The Bureau of Labor Funds, Ministry of Labor, invests labor pension funds in domestic (foreign) equity securities, debt securities, and bank deposits on its own use and through agencies entrusted. However, the income from the Group’s amount allocated to plan assets is calculated based on the interest rate not lower than the local bank's interest rate for two-year time deposits.
Interest risk: A decrease in the interest rate in the government bonds will increase the present value of the defined benefit obligation; however, the return on the debt investment through the plan assets will also increase, and the increases will partially offset the effect of the net defined benefit liability.
Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of the participants in the plan. As such, an increase in the salary of the participants in the plan will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the Group’s defined benefit obligation were carried out by qualified actuaries. The critical assumptions made on the measurement date are as follows:

the measurement date are as follows:
Discount rate Expected salary increase percentage	December 31,2024 1.375%~1.50% 2.25%~2.750%	December 31,2023
		1.125%~1.250% 2.250%~2.750%

If each of the critical actuarial assumptions is subject to reasonably possible changes, when all other assumptions remain unchanged, the amounts by which the present value of the defined benefit obligation would increase (decrease) are as follows:

follows:
Discount rate Increase by 0.25% Decrease by 0.25% Expected salary increase percentage Increase by 0.25% Decrease by 0.25%	December 31,2024 ($ 2,268) $ 2,334 $ 2,266 ($ 2,313)	December 31,2023
	( (	( (	$ 2,483) $ 2,560 $ 2,479 $ 2,417)

As actuarial assumptions may be correlated, it is unlikely that only a single assumption would occur in isolation of one another, so the sensitivity analysis above may not reflect the actual changes in the present value of the defined benefit obligation.

may not reflect the actual changes obligation.	in the present value of	the defined benefit
The expected contributions to the plan for the following year The weighted average duration of the defined benefit obligations	December 31,2024 $ 1,670 2.9 years–9.8 years	December 31,2023
		$ 1,640 3.3 years–10.7 years

25. Equity

(1) Common stock

(1)	Common stock
(2)	Authorized number of shares (in thousands) Authorized capital stock Number of shares issued and fully paid (in thousands) Capital stock issued Capital surplus For loss make-up, payment in cash or capitalization as equity (1) Stock issuance premium Corporate bond conversion premium Donated assets received Share premium (restricted stock awards vested) Treasury stock transaction May not be used for any purpose Convertible corporate bond options (Note 20) Recognition of changes in ownership interest in subsidiaries (2)	December 31,2024 330,000 $ 3,300,000 178,011 $ 1,780,116 December 31,2024 $ 1,886 95 81 15,026 56,133 193,676 74 $ 266,971	December 31,2023
			330,000 $ 3,300,000 178,011 $ 1,780,116 December 31,2023
				$ 1,886 78 81 15,026 56,127 193,693 74 $ 266,965

Such capital surplus may be used to make up for losses or, when the Company has no losses, to distribute cash or to capitalize equity, provided that the capitalization is limited to a certain percentage of the paid-in capital each year.

This type of capital surplus represents the effect of equity transactions recognized for changes in the Company’s equity when the Company has not actually acquired or disposed of shares in a subsidiary, or adjustments to the capital surplus for the Company’s subsidiaries accounted for using the equity method.
(3) Retained Earnings and Dividend Policy

Under the earnings distribution policy as set forth in the Company’s Articles of Incorporation, where the Company made a profit in a fiscal year, the profit shall be first used for paying taxes, offsetting the cumulative deficit (including the adjusted amount of undistributed earnings), setting aside 10% of the remaining profit as a legal reserve as per law unless it has reached the total amount of the Company’s paid-in capital, setting aside an amount for or reversing a special reserve in accordance with the laws and regulations. Then, any remaining profit, together with any undistributed retained earnings at the beginning of the period (including the adjusted amount of undistributed earnings), shall be adopted by the Company’s Board of Directors as the basis for making a distribution proposal, which shall then be submitted to the shareholders’ meeting for a resolution before distribution of dividends to shareholders. Please refer to Note 27(7) for the policy on the remuneration to employees and directors stipulated the Articles of Incorporation.

In addition, according to the Company’s Articles of Incorporation, the Company shall consider the soundness and stability of the financial structure for the distribution of stock dividends and set the ratio of cash dividends to stock dividends for the year as per the Company’s growth needs. The ratio of cash dividends shall not be less than 10% of the total dividends.

Unless the legal reserve is appropriated until the balance reaches the paid-in capital of the Company. Legal reserve could be allocated for covering loss carried forward. If there is no loss, the amount of legal reserve in excess of the paid-in capital by 25% could be allocated as capital stock and paid out as cash dividend.

The Company held the general shareholders’ meetings on May 29, 2024 and June 2, 2023 to resolve to approve the 2023 and 2022 earnings distribution proposals, respectively. The details are as follows:

Legal reserve Provision (reversal) of a special reserve Cash dividends Cash dividends per share (NT$)		2023 $ 17,944 $ 143,094) $ 212,528 $ 1.2		2022
	(			$ 7,151 $ 135,896 $ 212,399 $ 1.2

The 2024 earnings distribution proposal made by the Board of Directors on March 7, 2025 is as follows:

March 7, 2025 is as follows:
Legal reserve Special reserve Cash dividends distributed Cash dividends per share (NT$)		2024
		$ 32,768 $ 80,142 $ 262,469 $ 1.5

The 2024 earnings distribution proposal is pending a resolution by the shareholders' meeting expected to be held on May 29, 2025.

(4) Special reserve

Special reserve
Opening balance Provision (reversal) of a special reserve Ending balance		2024 $ 167,949 143,094) $ 24,855		2023
	(			$ 32,053 135,896 $ 167,949

(5) Treasury stock

Treasury stock
Reason for repurchase Opening balance Increase during this year Decrease during this year Ending balance		Number of Shares(in thousands)
		2024 905 2,200 73) 3,032		2023
	(		(	1,361 - 456) 905

On April 16, 2024, the Board of Directors resolved to transfer 1,000 thousand shares of the repurchased treasury shares to employees in order to motivate them and enhance their cohesiveness. From April 18 to April 25, 2024, the Company had bought back 1,000 thousand of its shares which had been executed. The shares shall be transferred to employees at once or in installments within five years from the date of repurchase, and the average price actually bought back at NT$ 60.68 shall be the transfer price.

On August 7, 2024, the Board of Directors resolved to transfer 1,200 thousand shares of the repurchased treasury shares to employees in order to motivate them and enhance their cohesiveness. From August 9 to 15, 2024, the Company had bought back 1,200 thousand of its shares which had been executed. The shares are to be transferred to employees at once or in installments within five years from the date of repurchase, and the average price actually bought back at NT$ 55.82 shall be the transfer price. The Board of Directors, on August 23, 2024, resolved to transfer and buy back 73 thousand treasury shares to employees at the transfer prices of NT$ 55.82. The employee stock subscription record date was the resolution date, and the date of delivering all shares to employees was September 19, 2024.

The Board of Directors, on February 24, 2023, resolved to transfer and repurchase 280 thousand and 70 thousand treasury shares to employees at the transfer prices of NT$27.07 and NT$92.16. The employee stock subscription record date was the resolution date, and the date of delivering all shares to employees was March 23, 2023.

The Board of Directors, on August 7, 2023, resolved to transfer and repurchase 62 thousand and 44 thousand treasury shares to employees at the transfer prices of NT$27.07 and NT$92.16. The employee stock subscription record date was the resolution date, and the date of delivering all shares to employees was September 5, 2023.

Remuneration costs recognized for the transfer of treasury shares to employees on January 1 and December 31, 2024 and 2023 were NT$6 thousand and NT$4,170 thousand respectively.

The treasury shares held by the Company are to be transferred to employees and shall not be pledged in accordance with the Securities and Exchange Act nor shall they be entitled to rights, such as receipt of dividends and voting rights.

(6) Other equity
Exchange differences on the translation of financial statements of foreign operations

operations
Opening balance Incurred during the year Exchange differences on the translation of financial statements of foreign operations Ending balance	2024 ( $ 1,982 ) 1,353 ($ 629)	2023
		( $ 1,571 ) ( 411) ($ 1,982)

Unrealized gain or loss on financial assets measured at fair value through other comprehensive income

comprehensive income
Opening balance Incurred during the year Unrealized gain or loss Equity instruments Accumulated gains and losses on disposals transferred to retained earnings Ending balance Non-controlling interests Opening balance Share attributable to non-controlling interests Net income (loss) for the year Other comprehensive income for the year Unrealized gain or loss on financial assets measured at fair value through other comprehensive income Remeasurement of defined benefit plans	2024 ( $ 22,871 ) ( 38,215 ) (43,282) ($ 104,368) 2024 $ 572,157 19,303 424 141	2023
		( $ 166,378 ) 114,297 29,210 ($ 22,871) 2023
		$ 611,292 ( 2,154 ) 424 ( 11 )

(7) Non-controlling interests

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Treasury stock transaction Cash dividends issued by subsidiaries Non-controlling interests related to the outstanding vested stock options held by employees of Sentelic Corporation (Note 30) Ending balance	2024 $ - ( 29,396 ) - $ 562,629	2023
		$ 2 ( 39,140 ) 1,744 $ 572,157

26. Operating revenues

Operating revenues
Sales income - integrated circuits Trading of integrated circuits Design and testing income		2024 $ 2,106,431 987,906 282 $ 3,094,619		2023
				$ 1,903,585 979,205 2,770 $ 2,885,560

(1) Contract balance

Contract balance
Accounts receivable (Note 10) Contract liabilities – current (accounted for in other liabilities) Merchandise sales	December 31, 2024 $ 1,013,048 $ 2,814	December 31, 2023 $ 923,254 $ 2,854	January1,2023
				$ 758,045 $ 2,705

The change in contract liabilities mainly arises from the difference between the point at which performance obligations are satisfied and the point at which customers pay.

The amounts of the opening balance of contract liabilities and the performance obligations previously fulfilled recognized in revenue are as follows:

Opening balance of contract liabilities Merchandise sales		2024 $ 2,854		2023
				$ 2,705

(2) Details of net operating income

Details of net operating income
Region Mainland China Taiwan Others		2024 $ 2,306,337 665,425 122,857 $ 3,094,619		2023
				$ 2,099,268 695,612 90,680 $ 2,885,560

27. Net income for the year

(1)	Interest income
			2024		2023
	Interest income from cash in
	banks		$ 33,936	$	38,884
	Others		10,588		7,376
			$ 44,524	$	46,260
(2)	Other income
			2024		2023
	Income from cash dividends		$ 45,560	$	51,958
	Other income		4,928		2,328
			$ 50,488	$	54,286
(3)	Other profits and losses
			2024		2023
	Foreign exchange gains
	(losses) – net		$ 119,261	( $	350 )
	Net gain (loss) on financial
	assets
	Financial assets at fair
	value through profit or
	loss (Note 7)	(	3,202 )		110,449
	Other losses	(	2,880)	(	685)
			$ 113,179	$	109,414
(4)	Financial costs
			2024		2023
	Interest of convertible
	corporate bonds		$ 21,496	$	6,473
	Interest from bank borrowings		4,018		17,726
	Interest on lease liabilities		909		1,105
			$ 26,423	$	25,304
(5)	Depreciation and amortization
			2024		2023
	Summary of depreciation
	expenses by function
	Operating costs		$ 31,602	$	35,970
	Operating expenses		34,855		35,031
			$ 66,457	$	71,001

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Summary of amortization expenses by function Operating costs Operating expenses (6) Employee benefit expenses Short-term employee benefits Retirement benefits (Note 24) Defined contribution pension plan Defined benefit plan Share-based payment Settlement of equity interests Total employee benefit expenses Summary by function Operating costs Operating expenses		2024 $ 265 104,684 $ 104,949 2024 $ 554,339 19,384 1,979 6 $ 575,708 $ 82,835 492,873 $ 575,708		2023
				$ 326 112,255 $ 112,581 2023
				$ 512,413 19,016 2,013 5,914 $ 539,356 $ 77,689 461,667 $ 539,356

(7) Remuneration for employees and directors

The Company, as per the Articles of Incorporation, allocates 11%~15% of net income before tax before the remuneration to employees and directors is deducted for the year as remuneration to employees and no more than 4% as the remuneration to employees and directors, respectively. The 2024 and 2023 remuneration to employees and directors resolved by the Board of Directors on March 7, 2025 and February 26, 2024, respectively, is as follows:

Estimate percentage

February 26, 2024, respectively, is as follows: Estimate percentage	follows:
2024 Remuneration for employees 12% Remuneration for directors 3% Amount 2024 Cash Stock Remuneration for employees $ 44,965 $ - Remuneration for directors $ 11,241 $ -	2024		2023
			12% 3% 2023
		Cash $ 33,329 $ 8,332		Stock
				$ - $ -

If there is a change in the amount after the annual consolidated financial statements are approved and released, the change will be accounted for as a change in accounting estimate and will be recorded an adjustment in the following year.

There is no difference between the amounts of remuneration paid out to employees and directors for 2023 and 2022 and the amounts recognized in the 2023 and 2022 consolidated financial statements.

For information on 2024 and 2023 remuneration to employees and directors resolved by the Board of Directors, please visit the Market Observation Post System (MOPS) of Taiwan Stock Exchange.

28. Income tax

(1) Income tax recognized in profit or loss

The major components of income tax expense are as follows.

The major components of income tax expense are as follows.	s.
2024 2023 Income tax expenses in the current period Incurred during this year $ 61,555 $ 47,091 Surtax on undistributed earnings - 17 Adjustment to the prior years ( 3,080) ( 14,559) 58,475 32,549 Deferred tax Incurred during this year ( 7,509 ) ( 12,867 ) Adjustment to the prior years - ( 282) Income tax recognized in profit or loss $ 50,966 $ 19,400 A reconciliation of accounting profit and income tax expense is as follows: 2024 2023 Net profit before taxation $ 345,831 $ 226,486 Income tax expense for net income before tax calculated at the domestic income tax rates that apply to relevant countries $ 89,726 $ 62,575 Non-deductible expenses for tax 10,710 ( 4,444 ) Tax-free income ( 5,871 ) ( 8,177 ) Unrecognized (recognized) deductible temporary differences ( 16,150 ) 16,574 Unrecognized investment tax credit ( 10,000 ) ( 15,000 ) Surtax on undistributed earnings - 17 Acquired through business combination ( 14,369 ) ( 17,304 ) This year’s adjustments to income tax expenses from prior years ( 3,080 ) ( 14,559 ) This year’s adjustments to deferred tax expenses from prior years - ( 282) Income tax recognized in profit or loss $ 50,966 $ 19,400		2023
	$ 226,486 $ 62,575 ( 4,444 ) ( 8,177 ) 16,574 ( 15,000 ) 17 ( 17,304 ) ( 14,559 ) ( 282) $ 19,400

(2) Income tax recognized in other comprehensive income

			2024		2023
	Deferred tax
	Incurred during this year
	Remeasurement of defined
	benefit plans	$	72	($		6)
(3)	Current tax assets and liabilities
		December 31,2024		December 31,2023
	Current tax assets
	Tax refund receivable	$	14,826	$	11,619
	Current tax liabilities
	Income tax payable	$	26,622	$	844

(4) Deferred tax assets and liabilities

Movements in deferred tax assets and liabilities are as follows:

2024

2024	2024
Deferred tax assets Opening Temporary differences Inventory valuation loss $ Paid leave payable $ Deferred tax liabilities Openingbalance Temporary differences Financial assets at fair value through profit or loss $ 1,741 Defined benefit pension plan 392 Unrealized exchange gain 1,872 Business combination 122,461 $ 126,466 2023 Deferred tax assets Opening Temporary differences Inventory valuation loss $ Paid leave payable $		Opening		balance Recognized in profit or loss Endingbalance 3,349 ( $ 2,239 ) $ 1,110 369 55 424 3,718 ($ 2,184) $ 1,534 Recognized in profit or loss Recognized in other comprehensive income Endingbalance $ 836 $ - $ 2,577 30 72 494 3,810 - 5,682 ( 14,369) - 108,092 ($ 9,693) $ 72 $ 116,845 balance Recognized in profit or loss Endingbalance 6,955 ( $ 3,606 ) $ 3,349 494 ( 125) 369 7,449 ($ 3,731) $ 3,718	Endingbalance
			$
			$
	$	1,741 392 1,872 122,461 126,466 Opening
	$

Temporary differences Inventory valuation loss Paid leave payable			$			$ 3,349 369 $ 3,718
			$

Deferred tax liabilities Temporary differences Financial assets at fair value through profit or loss Defined benefit pension plan Unrealized exchange gain Business combination	Openingbalance	Openingbalance	( ( (	Recognized in profit or loss $ 1,741 30 1,347 ) 17,304) $ 16,880)	Recognized in other comprehensive income	Recognized in other comprehensive income	Endingbalance $ 1,741 392 1,872 122,461 $ 126,466	Endingbalance $ 1,741 392 1,872 122,461 $ 126,466
		$ - 368 3,219 139,765 $ 143,352			( (	$ - 6 ) - - $ 6)		$ 1,741 392 1,872 122,461 $ 126,466

(5) Deductible temporary differences not recognized as deferred tax assets in the consolidated balance sheet

consolidated balance sheet
Deductible temporary differences	December 31,2024 $ 190,319	December 31,2023
			$ 227,036

(6) The state of income tax assessment

The Company, Yingquan Investment Co., Ltd. and Sentelic Corporation’s profit-seeking enterprise income tax returns filed have been approved by the tax authority up to 2022.

29. Earnings per shares

authority up to 2022. Earnings per shares
Basic earnings per share Diluted earnings per share		2024 $ 1.57 $ 1.50	Unit: NTD per share 2023 $ 1.18 $ 1.17

The earnings and weighted average number of ordinary shares used to calculate the earnings per share are as follows:

Net income for the year

earnings per share are as follows: Net income for the year
Net income used to calculate basic earnings per share Impact of potential common stock with dilutive effect: After-tax interest of convertible corporate bonds Net income used to calculate diluted earnings per share		2024 $ 275,562 17,197 $ 292,759		2023
				$ 209,240 5,179 $ 214,419

Number of Shares

Unit: Thousand shares

Weighted average number of shares of common stock used to calculate basic earnings per share Impact of potential common stock with dilutive effect: Corporate bonds converted Remuneration for employees Weighted average common stock shares used to calculate diluted earnings per share		2024 175,978 18,301 884 195,163		2023
				176,981 5,466 535 182,982

If the Group may elect to pay employee remuneration in stock or cash, when diluted earnings per share are calculated, it is assumed that employee remuneration will be paid out in stock, and when the ordinary shares are potentially dilutive, they will be included in the weighted average number of outstanding shares to calculate diluted earnings per share. The diluting effect of these potential common shares also continues to be considered in the calculation of diluted earnings per share before the number of shares awarded to employees in the following year’s resolution.

30. Share-based payment

Restricted stock awards

The shareholders' meeting of Sentelic Corporation resolved, on May 24, 2019, to issue a total of 800 thousand shares of restricted stock awards in the amount of NT$8,000 thousand free of charge and grant them to employees at Sentelic Corporation who have been employed on the day when the restricted stock awards are granted. The above resolution was filed to the FSC and enforced on October 4, 2019, and the restricted stock awards were issued with the approval of the board of directors on July 31, 2020. The record date for the capital increase through the restricted stock awards was August 10, 2020, and the fair value of the shares on the grant date was NT$39.50 per share. After employees were granted the awards, they could vest 40% of them if they have worked for one full year from the grant date; if they have worked for two full years from the grant date, they could vest another 30% of them; if they have worked for three full years from the grant date, they could vest the remaining 30%. From the grant date to the reporting date, 78 thousand shares of the awards became invalid due to employees’ resignation or failure to meet the vesting conditions during the vesting period. The cancellation procedure has been completed after the resolution was adopted by the Board of Directors. In addition, the vesting period for the restricted stock awards issued by the subsidiary, Sentelic Corporation, has ended, and there are no restricted stock awards in circulation.

The movements in the accounts related to the above restricted stock awards are aggregated as follows:

gregated as follows:
Balance at January 1, 2023 Cost of share-based remuneration recognized Vested restricted stock awards Adjustment for changes in turnover rate Balance at December 31, 2023	Common stock $ 7,368 ( 150 ) - - $ 7,218	Capital surplus - restricted stock awards $ 5,555 150 ( 5,948 ) 243 $ -	Capital surplus - stock issuance premium $ 15,346 - 5,948 - $ 21,294	Other equity - Unearned employee compensation
	(	(		( (	$ 1,501 ) 1,744 - 243) $ -

The restricted rights of employees’ unvested restricted stock awards are as follows:

(1) Employees shall not sell, transfer, donate, pledge, dispose of the awards or in other means except for inheritance after being granted before vesting them.
(2) The rights to attend, make proposals, speak, and vote at shareholders’ meetings shall be handled in accordance with the trust custody agreements.
(3) In addition to the provisions of the trust custody agreements in the preceding paragraph, the rights attached to the restricted stock awards granted to employees according to these rules are the same as ordinary shares issued by Sentelic Corporation except for the right to subscribe for new shares in cash capital increase and the right to receive stock or cash dividends before the vesting conditions are met.
(4) After employees are granted restricted stock awards, they should deliver the awards to the trust immediately and shall not require the trustee to return said awards for any reason or in any method before meeting the vesting conditions.
(5) From the Company’s book closure date for stock dividends, book closure date for cash dividends, book closure date for cash capital increase and share subscription, book closure period for the shareholders’ meeting stipulated in Article 165, paragraph 3 of the Company Act, or other legal book closure periods that occur as per facts through the record date of rights distribution, employees who meet the vesting conditions during this period still do not have the right to vote, subscribe for shares, receive stock or cash dividends with their vested awards.

The costs of remuneration for 2023 recognized by the Group was NT$ 1,744 thousand, respectively.

Capital Risk Management

The Group manages its capital to ensure that the Group’s enterprises are able to operate sustainability while maximizing the return to shareholders through the optimization of the debt and equity balance. There has been no change in the Group’s overall strategy.

The Group’s capital structure consists of the Group’s equity attributable to the owners of the Company (i.e. share capital, capital surplus, retained earnings, and other equity).

32. Financial instruments

(1) Fair value information – Financial instruments that are not measured at fair value December 31, 2024

December 31, 2024
Financial liabilities Financial liabilities at amortized cost - convertible corporate bonds December 31, 2023 Financial liabilities Financial liabilities at amortized cost - convertible corporate bonds	Carrying amount $ 1,062,505 Carrying amount $ 1,041,009	Level 1 $ 1,195,151 Level 1 $ 1,347,830	Level 2 $ - Level 2 $ -	Level 3 $ - Level 3 $ -	Total
					$ 1,195,151 Total
					$ 1,347,830

(2) Fair value information - financial instruments measured at fair value on a recurring basis
Fair value hierarchy

December 31, 2024

Fair value hierarchy December 31, 2024
Financial assets at fair value through profit or loss Domestic listed stocks Domestic unlisted stocks Privately offered funds Financial assets measured at fair value through other comprehensive income Equity investment - Domestic listed stocks - Domestic non-listed stocks - Foreign non-listed stocks Financial liabilities Measured at Fair Value Through Profit or Loss Derivatives		Level 1 $ 771,858 - - $ 771,858 $ 550,956 - - $ 550,956 $ -		Level 2 $ - - - $ - $ - - - $ - $ 2,310		Level 3 $ - 3,419 79,352 $ 82,771 $ - 38,379 31,910 $ 70,289 $ -		Total
								$ 771,858 3,419 79,352 $ 854,629 $ 550,956 38,379 31,910 $ 621,245 $ 2,310

December 31, 2023

December 31, 2023
Financial assets at fair value through profit or loss Domestic listed stocks Domestic unlisted stocks Fund beneficiary certificates Privately offered funds Financial assets measured at fair value through other comprehensive income Equity investment - Domestic listed stocks - Domestic non-listed stocks - Foreign non-listed stocks Financial liabilities Measured at Fair Value Through Profit or Loss Derivatives		Level 1 $ 335,314 - 174,119 - $ 509,433 $ 468,486 - - $ 468,486 $ -		Level 2 $ - - - - $ - $ - - - $ - $ 110		Level 3 $ - 451 - 80,212 $ 80,663 $ - 38,189 29,885 $ 68,074 $ -		Total
								$ 335,314 451 174,119 80,212 $ 590,096 $ 468,486 38,189 29,885 $ 536,560 $ 110

There were no transfers between Level 1 and Level 2 fair values during the years ended December 31, 2024 and 2023.

Reconciliation of financial instruments measured at fair value in Level 3

2024

2024
Financial assets Opening balance Recognized in profit or loss (other gains and losses) Allocation of income Disposal Recognized in other comprehensive income (unrealized valuation gains or losses on financial assets measured at fair value through other comprehensive income) Ending balance	Equityinstruments Financial assets at fair value through profit or loss Financial assets measured at fair value through other comprehensive income $ 80,663 $ 68,074 10,425 - ( 6,858 ) - ( 1,459 ) - - 2,215 $ 82,771 $ 70,289	Total
	Financial assets at fair value through profit or loss $ 80,663 10,425 ( 6,858 ) ( 1,459 ) - $ 82,771
		$ 148,737 10,425 ( 6,858 ) ( 1,459 ) 2,215 $ 153,060

2023

2023
Financial assets Opening balance Purchase Allocation of income Recognized in profit or loss (other gains and losses) Recognized in other comprehensive income (unrealized valuation gains or losses on financial assets measured at fair value through other comprehensive income) Ending balance	Equityinstruments Financial assets at fair value through profit or loss Financial assets measured at fair value through other comprehensive income $ 71,098 $ 62,528 22,593 - ( 2,245 ) - ( 10,783 ) - - 5,546 $ 80,663 $ 68,074	Total
	Financial assets at fair value through profit or loss $ 71,098 22,593 ( 2,245 ) ( 10,783 ) - $ 80,663
		$ 133,626 22,593 ( 2,245 ) ( 10,783 ) 5,546 $ 148,737

Valuation techniques and input values for Level 2 fair value measurement

Financial instruments Valuation techniques and input values Derivatives-Value of The two-year bond valuation model: The key basis redemption right variable of the option is tracked and dispersed over several time slots between the evaluation date and maturity date through the two-year tree. Each node of the tree represents the possible price at a specific time point.

Valuation techniques and input values for Level 3 fair value measurement

The aggregate value of the individual assets and individual liabilities in the investments in domestic (foreign) unlisted equity and privately offered funds was evaluated in the asset method to reflect the overall value of an enterprise or business.

(3) Types of financial instruments

enterprise or business. Types of financial instruments
Financial assets Measured at fair values through profit and/or loss Mandatorily at fair value through profit Financial assets at amortized cost (Note 1) Financial assets at fair value through other comprehensive income - investments in equity instruments	December 31,2024 $ 854,629 2,312,926 621,245	December 31,2023
		$ 590,096 2,479,808 536,560

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Financial liabilities Measured at fair values through profit and/or loss Mandatorily at fair value through profit Measured at amortize cost (Note 2)	December 31,2024 $ 2,310 1,705,724	December 31,2023
		$ 110 1,499,829

Note 1: The balance includes financial assets at amortized cost, including cash and cash equivalents, notes receivable, accounts receivable, other receivables, and guarantee deposits paid.
Note 2: The balance includes financial liabilities at amortized cost, including short-term borrowings, notes payable, accounts payable, other payables, corporate bonds payable, and guarantee deposits received.
(4) Purpose and policy of financial risk management

The Group’s main financial instruments include equity investments, accounts receivable, accounts payable, borrowings, and lease liabilities. The Group’s financial management department provides services to each business unit, coordinates the operations of investments in the domestic and international financial markets, and supervises and manages the financial risks related to the Group’s operations by analyzing the internal risk reports of exposures according to the level and breadth of the risks. These risks include market risk (including exchange rate risk, interest rate risk and other price risk), credit risk and liquidity risk.

The financial management department reports regularly to the Group’s Board of Directors.

Market Risk

The main financial risks to the Group’s operating activities are the risk of foreign exchange rate fluctuations (see (1) below) and the risk of changes in interest rates (see (2) below).

There have been no changes in the Group’s exposure to financial instrument market risks and its method to managing and measuring such exposure.

(1) Exchange rate risk

Some of the Group’s cash inflows and outflows are denominated in foreign currencies with the effect of natural hedging; the Group’s management of the exchange rate risk aims to hedge rather than making profits.

Refer to Note 36 for the carrying amounts of the Group’s monetary assets and monetary liabilities denominated in non-functional currencies (including monetary items in non-functional currencies that have been eliminated in the consolidated financial statements) on the balance sheet date.

Sensitivity analysis

The Group is mainly affected by the fluctuations in the exchange rates of USD.

The table below illustrates the Group’s sensitivity analysis when the NT$ (the functional currency) increases and decreases by 1% against each relevant foreign currency. In the sensitivity analysis, the outstanding monetary items in foreign currencies were taken into account, the end-of-period translation was adjusted by 1% change in exchange rates. The positive numbers in the following table represent the increase in net profits before tax if the New Taiwan dollar weakens by 1% against the respective currencies, and the negative numbers for the same amount represent the decrease in net profits before tax if the NT dollar strengthens by 1% against the respective currencies.

Profit or loss		Impact of	USD
		2024 $ 11,945		2023
				$ 17,239

The Group’s sensitivity to the USD increased in this year, mainly due to the decrease in its foreign currency assets.

The management believes that the sensitivity analysis cannot represent the inherent exchange rate risk as foreign currency exposures on the balance sheet date cannot reflect the interim exposures.

Interest rate risk

Interest rate exposures arise as entities under the Group hold assets and liabilities at both fixed and floating rates.

The carrying amount of financial assets and liabilities of the Group under interest rate exposure on balance sheet date is as follows:

With fair value interest rate risk – Financial assets – Financial liabilities With cash flow interest rate risk – Financial assets – Financial liabilities	December 31,2024 $ 657,344 1,213,014 546,101 35,000	December 31,2023
		$ 1,116,840 1,089,869 411,864 150,000

Sensitivity analysis

The following sensitivity analyses are based on the interest rate risk exposure of the non-derivative instruments on the balance sheet date. The analysis of assets at floating rates is based on the assumption that the amount of assets outstanding at the balance sheet date was outstanding throughout the reporting period.

If the annual rate of interest increased/decreased by 1%, with all other variables remaining unchanged, the Group’s net income before tax for 2024 and 2023 would have decreased/increased by NT$5,111 thousand and NT$2,619 thousand, respectively, mainly due to the Company’s exposure to the risk of the net assets at floating interest rates.

The Group’s sensitivity to interest rates increased in this period, mainly due to the increase in the financial assets at floating interest rates.

(3) Other price risks

The Group is exposed to equity price risk due to its investments in the listed equity securities held. The equity investments are not held for trading and are strategic investments. The Group is not actively trading these equity securities. The Group’s equity price risk is mainly concentrated in the equity instruments in the electronic industry traded in stock exchanges and over-the-counter markets in Taiwan.

Sensitivity analysis

The sensitivity analysis below was performed based on the equity price exposure on the balance sheet date.

If the securities price increased/decreased by 1%, the profit or loss before tax for 2024 and 2023 would have decreased/increased by NT$8,546 thousand and NT$5,901 thousand respectively, mainly due to increase/decrease in the Company’s financial assets at fair value through profit or loss.

If the securities price increased/decreased by 1%, the other comprehensive income before tax for 2024 and 2023 would have increased/decreased by NT$6,212 thousand and NT$5,366 thousand respectively, mainly due to increase/decrease in the Group’s financial assets at fair value through other comprehensive income.

The Group’s sensitivity to price risk increased in this period, mainly due to the increase in the Group’s investment in financial assets at fair value through profit or loss and the financial assets at fair value through other comprehensive income.

2. Credit Risk

Credit risk refers to the risk that a counterparty defaults on its contractual obligations, resulting in a financial loss to the Group. As of the balance sheet date, the Group’s maximum exposure to credit risk of financial loss due to non-performance by counter-parties is mainly from the carrying amount of financial assets recognized in consolidated balance sheets.

To mitigate credit risk, the Group has formulated credit and accounts receivable management measures to ensure that appropriate actions have been taken to recover overdue receivables. In addition, the Group will review the recoverable amount of receivables on each balance sheet date to ensure that appropriate impairment loss has been appropriated for the uncollectible receivables. Accordingly, the Group’s management believes that the Group’s credit risk is significantly reduced.

The Group has a wide range of clients across different industries and geographical regions for accounts receivables. The Group continuously evaluates the financial position of clients with accounts receivable.

The Group does not have significant credit risk exposure to any single counterparty or any group of counterparties with similar characteristics. When the transaction counterparties are affiliates, the Group defines them as transaction counterparties with similar characteristics.

3. Liquidity Risk

The Group manages and maintains sufficient cash and cash equivalents to support the Group’s operations and mitigate the impact of cash flow fluctuations. The Group’s management monitors the use of bank financing facilities and ensures compliance with the terms of the borrowing agreements.

Bank loans are a source of liquidity for the Group. Please refer to the description of (2) financing facilities below for the Group’s bank financing facilities undrawn as of December 31, 2024 and 2023.

(1) Table of liquidity and interest rate risk of non-derivative financial liabilities

The analysis of the remaining contractual maturities of non-derivative financial liabilities has been prepared based on the undiscounted cash flows (including principal and estimated interest) of the financial liabilities based on the earliest possible date on which the Group can be required to make repayment. Therefore, bank borrowings that the Group may be required to repay immediately are shown in the table below for the earliest period, without regard to the probability that the bank will enforce the right immediately; the maturity analysis of other non-derivative financial liabilities is prepared based on the contractual repayment dates.

December 31, 2024

Non-derivative financial assets No interest-bearing liabilities Floating rate instruments Fixed rate instruments Lease liability	Repayment on demand or less than 1 month	Repayment on demand or less than 1 month		1–3 months	3 months to 1 year	3 months to 1 year		Over 1year		Total
		$ 353,636 20,000 100,618 1,644 $ 475,898		$ 153,422 - - 3,288 $ 156,710		$ 103 15,000 1,062,505 14,473 $ 1,092,081		$ - - - 31,973 $ 31,973		$ 507,161 35,000 1,163,123 51,378 $ 1,756,662

Further information on maturity analysis of lease liabilities is as follows:

follows:	follows:
Fixed rate instruments Lease liability December 31, 2023		Less than 1 year						Over 3year
					$ $ to 1	$		$ - $ 1,085 Total
						$

Non-derivative financial assets No interest-bearing liabilities Floating rate instruments Fixed rate instruments Lease liability
	$ 197,407 100,000 - 1,632 $ 299,039		$ 103,066 50,000 - 3,264 $ 156,330	$ 7,903 - - 13,248 $ 21,151			$ 4 - 1,041,009 32,434 $ 1,073,447		$ 308,380 150,000 1,041,009 50,578 $ 1,549,967

Further information on maturity analysis of lease liabilities is as follows:

follows:	follows:
Less than 1 year 1 to 2years Fixed rate instruments $ - $ - Lease liability $ 18,144 $ 12,930 (2) Financing facilities December 31,2024 Unsecured bank overdraft facility - Borrowing facilities used $ 135,618 - Borrowing facilities unused 1,491,082 $ 1,626,700 Secured bank overdraft facility - Borrowing facilities used $ - - Borrowing facilities unused 765,000 $ 765,000		2 to 3years Over 3year $ 1,041,009 $ - $ 11,616 $ 7,888 December 31,2023 $ 150,000 750,000 $ 900,000 $ - 1,688,120 $ 1,688,120		Over 3year
		$

	$ 135,618 1,491,082 $ 1,626,700 $ - 765,000 $ 765,000		$ 150,000 750,000 $ 900,000 $ - 1,688,120 $ 1,688,120

33. Related Party Transactions

Transactions, account balances, income and expenses between the Company and its subsidiaries (which are the Company’s related parties) were all eliminated upon consolidation, so they are not disclosed in this note. Except for those disclosed in other notes, transactions between the Group and other related parties are as follows.

(1) Remuneration for key management

Remuneration for key management
Short-term employee benefits Share-based payment Retirement benefits		2024 $ 52,224 - 935 $ 53,159		2023
				$ 51,830 1,304 565 $ 53,699

The remuneration for directors and other key management is determined by the Board of Directors based on individual performance and market trends.

34. Pledged Assets

The assets below have been pledged as collateral for borrowings from banks and to customs:

customs:
Certificates of deposit pledged (under financial assets at amortized cost - non-current) Property, plant, and equipment	December 31,2024 $ 15,405 139,337 $ 154,742	December 31,2023
			$ 10,401 141,420 $ 151,821

35. Significant Subsequent Events

The Company’s Board of Directors approved the merger with the subsidiary Sentelic Corporation through a share swap arrangement on March 7, 2025. The Company will issue new shares in exchange for 1.60 common shares of the Company for 1 common share of Sentelic Corporation, and acquire all the outstanding shares of the Company. After the completion of the share transfer, Sentelic Corporation will become a 100% owned subsidiary of the Company. The aforementioned share conversion is expected to be approved by the shareholders’ meeting on May 29, 2025, and the record date for the share conversion will be set after obtaining the approval from the competent authorities.

On March 7, 2025, the Board of Directors of the subsidiary, Weltrend International Co., (BVI) Ltd., passed a resolution to reduce its capital by US$6,164,233 thousand in cash.

36. Information on foreign currency assets and liabilities with significant effect:

The information below is aggregated and presented in foreign currencies other than the functional currencies of the entities under the Group. The exchange rates disclosed refer to the rates at which these foreign currencies are converted to the functional currency. The information on foreign currency assets and liabilities with significant effect is as follows:

follows:
Financial assets Monetary items USD Non-monetary items USD Financial liabilities Monetary items USD USD		December 31, 2024		Foreign currency $ 63,179 973 6,066 959	December 31, 2023
	Foreign currency $ 48,954 973 11,390 1,124	Exchange rate	Carrying amount		Exchange rate 30.70 (USD: NTD) 30.70 (USD: NTD) 30.70 (USD: NTD) 7.09 (USD: RMB)	Carrying amount
		32.78 (USD: NTD) 32.78 (USD: NTD) 32.78 (USD: NTD) 7.18 (USD: RMB)	$ 1,604,712 $ 31,895 $ 373,364 36,845 $ 410,209			$ 1,939,595 $ 29,877 $ 186,226 29,441 $ 215,667

The Group is mainly exposed to the foreign currency exchange rate risk of USD and RMB. The following information is presented in aggregate for the functional currencies of the individual entity holding the foreign currencies, and the exchange rates disclosed are the rates at which those functional currencies are translated into the presenting currency. Foreign currency translation gains and losses (realized and unrealized) with significant effect are as follows:

Functional currency NTD RMB	2024	Net exchange gain or loss $ 121,024 ( 1,763) $ 119,261	2023
	Functional currency exchanged to presenting currency 1 (NTD: NTD) 4.51 (RMB: NTD)		Functional currency exchanged to presenting currency 1 (NTD: NTD) 4.40 (RMB: NTD)	Net exchange gain or loss
		(		( (	$ 747 1,097) $ 350)

37. Additional Disclosures

(1) Information on Significant Transactions:
The Loaning of Funds: None.
Endorsements and guarantees for others: None.
Securities Held at the End of the Period (Excluding Investment in Subsidiaries, Associates, and Joint Ventures): Table 1.
Marketable Securities Acquired or Sold at Costs or Prices at Least NT$300 million or 20% of the Paid-in Capital: None.
Acquisition of Individual Property at Costs of at Least NT$300 million or 20% of the Paid-in Capital: None.
Disposal of Individual Property at Costs of at Least NT$300 million or 20% of the Paid-in Capital: None.

Total Purchases from or Sales to Related Parties Amounting to at Least NT$100 million or 20% of the Paid-in Capital: None.
Receivables from Related Parties Amounting to at Least NT$100 million or 20% of the Paid-in Capital: None.
Trading in Derivative Instruments: None.
Business Relations and Important Transactions between Parent Company and Subsidiaries and Among Subsidiaries and Amounts: Table 2.
(2) Information on Investees: Table 3.
(3) Information on investment in Mainland China:
Information on investees in Mainland China, including the name, main business and products, paid-in capital, method of investment, inward and outward remittance of funds, percentage of ownership, investment income or loss, carrying amount of the investment at the end of the period, repatriation of investment income, and limit on the amount of investment in the Mainland China area: Table 4.
The following significant transactions with investees in Mainland China, directly or indirectly through third regions, and their prices, payment terms, and unrealized gains or losses: Table 5.
- (1) The amount and percentage of purchases and the related ending balance and percentage of payables.
- (2) The amount and percentage of sales and the related ending balance and percentage of receivables.
- (3) The amount of property transactions and the amount of resulting gains or losses.
- (4) The ending balance of endorsement guarantee of bills or the provision of collateral and its purpose.
- (5) The maximum balance, ending balance, interest rate range and total current interest amount of financial accommodation
- (6) Other transactions that have a significant effect on the current profit or loss or financial position, such as the provision or receipt of services.
(4) Information on Major Shareholders: The name of shareholders with a shareholding ratio of 5% or more, and the number and percentage of shares held: Table 6.

38. Segment Information

The Group’s information reported to the chief operating decision-maker for resource allocation and segment performance assessment focuses on types of goods or services delivered or provided. The financial reporting information is measured on the same basis as that for these consolidated financial statements. The Group’s reportable segments are its self-owned product segment and product agency segment.

(1) Revenue and operating results of segments

					Segment revenues	Segment revenues
			2024			2023
				Inter-segment			Inter-segment
	External revenue			revenues		External revenue	revenues
Self-owned product	$	2,106,713		$	-	$ 1,906,355	$	156
segment
Product agency segment		987,906			97,430	979,205	83,713
	$	3,094,619		$	97,430	$ 2,885,560	$ 83,869
					Segmentprofits or losses
					2024		2023
Self-owned product segment					$ 125,109	$	40,773
Product agency segment					38,965		1,068
Total reportable segments’					164,074		41,841
profit
Inter-segment profit eliminated				(	11)	(	11	)
					164,063		41,830
Unallocated amount:
Non-operating income and					181,768	184,656
expenses
Net profit before	taxation				$ 345,831	$ 226,486

Segments’ profit refers to the profit earned by each segment, excluding non-operating income and expenses that should be allocated. This measure is provided to the chief operating decision maker to allocate resources to segments and to measure their performance.

(2) Segments’ total assets

to measure their performance. Segments’ total assets
Segments’ assets Self-owned product segment Product agency segment Total segment assets Unallocated assets Total consolidated assets	December 31,2024 $ 5,559,498 414,826 5,974,324 - $ 5,974,324	December 31,2023
			$ 5,571,450 280,513 5,851,963 - $ 5,851,963

All assets are allocated to reportable segments. Assets shared by reportable segments are allocated based on income earned by each reportable segment.

(3) Revenue from main products and services

The analysis of the revenue from the Group's main products and services is as follows:

follows:
Sales income - integrated circuits Trading of integrated circuits Design and testing income		2024 $ 2,106,431 987,906 282 $ 3,094,619		2023
				$ 1,903,585 979,205 2,770 $ 2,885,560

(4) Information by region

The Group mainly operates business in Taiwan, mainland China, and other regions.

The Group's revenue from external clients classified by region where business is operated and the information on non-current assets classified by locations of the assets are stated below:

Taiwan Mainland China Others		Revenue from external clients 2024 2023 $ 665,425 $ 695,612 2,306,337 2,099,268 122,857 90,680 $ 3,094,619 $ 2,885,560	Revenue from external clients 2024 2023 $ 665,425 $ 695,612 2,306,337 2,099,268 122,857 90,680 $ 3,094,619 $ 2,885,560	Non-current assets	Non-current assets	Non-current assets
		2024 $ 665,425 2,306,337 122,857 $ 3,094,619		December 31, 2024 $ 1,313,646 2,468 - $ 1,316,114	December 31, 2023
						$ 1,404,056 2,444 - $ 1,406,500

Non-current assets exclude financial instruments and deferred tax assets

(5) Information on main clients

Single customers contributing 10% or more of the Group’s total revenue are as follows:

follows:
Name of client Customer A Customer B	2024 Amount Percentage % $ 324,582 10.49 262,267 8.47	2023
		Amount	Percentage % - 10.51
		Note $ 303,293

Note: The amount of revenue did not reach 10% of the Group’s total revenue.

Weltrend Semiconductor, Inc. and Its Subsidiaries

Marketable securities held at the end of the period

December 31, 2024

Table 1

Unit: In thousand NTD and thousand shares, unless otherwise specified

Companies held	Types and names of marketable securities	Relations with the securities issuer	Account in the book		EndingBalance	EndingBalance		Amount pledged (Note)
				Number of shares/Unit	Carrying amount	Shareholdings ratio	Fair value
The Company	Stock Greatek Electronics Inc. Sunonwealth Electric Machine Industry Co., Ltd. Quanta Computer Inc. China Metal Products Co., Ltd. Aerospace Industrial Development Corporation United Microelectronics Corporation Unimicron Technology Corp. Kinik Company Zilltek Technology Corp. Richwave Technology Corp. Taiwan Semiconductor Manufacturing Co., Ltd. Ememory Technology Inc. Xintec Inc. TRIO Technology Co., Ltd. Seychelles Shin Zu Shing Co., Ltd. Delta Electronics, Inc.	- - - - - - - - - - - - - - - -	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current	4,614 820 20 3,640 1,557 1,000 220 80 70 80 15 3 30 35 20 5	$ 270,842 80,032 5,740 112,840 69,831 43,050 31,020 22,920 22,435 17,040 16,125 10,065 5,940 5,792 4,200 2,153	- - - - - - - - - - - - - - - -	$ 270,842 80,032 5,740 112,840 69,831 43,050 31,020 22,920 22,435 17,040 16,125 10,065 5,940 5,792 4,200 2,153	$ - - - - - - - - - - - - - - - -

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Companies held	Types and names of marketable securities	Relations with the securities issuer	Account in the book		EndingBalance	EndingBalance		Amount pledged (Note)
				Number of shares/Unit	Carrying amount	Shareholdings ratio	Fair value
The Company Weltrend International Co., (BVI) Ltd. Yingquan Investment Co., Ltd.	Coremate Technical Co., Ltd. Silicongear Corporation AETAS TECHNOLOGY INC. AETAS TECHNOLOGY INC. AETAS TECHNOLOGY INC. Privately offered funds Zoyi Venture Capital Co., Ltd. Stock Greatek Electronics Inc. Sunonwealth Electric Machine Industry Co., Ltd. China Metal Products Co., Ltd. Keron Holding Corpratin IDILL INTERNATIONAL., INC. Greatek Electronics Inc. Sunonwealth Electric Machine Industry Co., Ltd. Merry Electronics Co., Ltd. United Microelectronics Corporation Taiwan Semiconductor Manufacturing Co., Ltd. GOTRUSTID Inc. Taiwan Branch Anqing Innovation Investment Co., Ltd.	- - - - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss – non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through profit or loss – non-current Financial assets at fair value through other comprehensive income - non-current	161 1 36 7 3 - 870 1,784 2,912 201 250 2,024 730 263 350 50 500 3,114	$ - - - - - 79,352 51,069 174,118 90,272 31,910 - 118,809 71,248 28,455 15,068 53,750 3,419 20,387	2% - Preferred Series B Preferred Series C Preferred Series D - - - - Preferred Series A-2 - - - - - - 3% 6%	$ - - - - - 79,352 51,069 174,118 90,272 31,910 - 118,809 71,248 28,455 15,068 53,750 3,419 20,387	$ - - - - - - - - - - - - - - - - - -

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Companies held	Types and names of marketable securities	Relations with the securities issuer	Account in the book		EndingBalance	EndingBalance		Amount pledged (Note)
				Number of shares/Unit	Carrying amount	Shareholdings ratio	Fair value
Yingquan Investment Co., Ltd. Sentelic Corporation	Chongyou Investment Co., Ltd. Baycom Opto-Electronics Technology Co., Ltd. Stock Lavod Corporation	- - -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss – non-current	655 401 252	$ 13,656 4,336 -	9% 1% 8.48%	$ 13,656 4,336 -	$ - - -

Note: The listed marketable securities are not restricted users due to the provision of pledged loans.

Weltrend Semiconductor, Inc. and Its Subsidiaries

Business relationships, significant transactions and amounts between parent company and subsidiaries and among subsidiaries.

For the Year Ended December 31, 2024

Table 2

Unit: In thousand NTD, unless otherwise specified

No.	Trader name	Counterparty	Relations with trader (Note 4)		Transactions	Transactions
				Account	Amount	Trading conditions	As a percentage of consolidated total revenue or total assets
0 1 2	The Company Dongguan Prosil Electronics Co., Ltd. Sentelic Corporation	Dongguan Prosil Electronics Co., Ltd. Yingquan Investment Co., Ltd. Sentelic Corporation The Company Sentelic Corporation The Company	1 2 2 3 4 5	Net operating income Accounts receivable Rental incomes Sales revenue Accounts receivable Other income Other receivables Other income Other income Other receivables Sales revenue Accounts receivable	$ 97,430 36,860 11 4,145 1,614 1,782 95 1,823 3,140 191 645 99	Note 1 Note 2 Note 1 Note 1 Note 3 Note 1 Note 3 Note 1 Note 1 Note 3 Note 1 Note 3	3% 1% - - - - - - - - - -

Note 1: It is based on the terms negotiated by both parties without other suitable transaction counterparties for comparison.

Note 2: It is mainly net 90 days at the end of each month for collection (payment).

Note 3: It is mainly net 30 days at the end of each month for collection (payment).
Note 4: 1 represents the transactions from parent company to sub-subsidiary.
2 represents the transactions from parent company to subsidiary.
3 represents the transactions from sub-subsidiary to parent company.
4 represents the transactions from sub-subsidiary to subsidiary.
5 represents the transactions from subsidiary to parent company.

Weltrend Semiconductor, Inc. and Its Subsidiaries

Information on the investee, location, etc. (excluding investees in China)

For the Year Ended December 31, 2024

Table 3

Unit: In thousand NTD, unless otherwise specified

Investor name	Investee	Location	Principal business	Original investment amount	Original investment amount	Holding,end ofperiod	Holding,end ofperiod	Holding,end ofperiod	Profits (losses) of the investee for the period	Investment incomes (losses) recognized in theperiod	Remarks
				End of the period	End of last year	Number of Shares (in thousands)	Percentage (%)	Carrying amount
The Company Sentelic Corporation	Weltrend International Co., (BVI) Ltd. Yingquan Investment Co., Ltd. Sentelic Corporation Sentelic Holding Co., Ltd.	British Virgin Islands Taiwan Taiwan Republic of Mauritius.	Investment Investment Integrated circuit development and design, analog circuit design, digital signal processing, application software development, and import and export of electronic components. Investment	$ 265,000 241,486 1,117,120 18,782	$ 265,000 241,486 1,117,120 18,782	8,164 32,416 15,324 625	100 98 51 100	$ 516,524 352,851 1,022,890 23	$ 34,109 1,399 96,887 -	$ 34,109 1,375 20,131 -	Note 1 Note 1 Note 1 and 3 Note 1 and 4

Note 1: It was calculated based on the financial reports for the same periods audited by CPAs.

Note 2: Please refer to Table 4 for the relevant information on the investees in Mainland China.
Note 3: Investment income (losses) recognized in this period is based on financial information before inter-company transactions were eliminated and recognized after adjustments based on the effect of the acquisition method.

Note 4: On November 4, 2024, the Board of Directors approved the dissolution and liquidation of the subsidiary, Sentelic Holding Co., Ltd.

Weltrend Semiconductor, Inc. and Its Subsidiaries Information on investment in Mainland China For the Year Ended December 31, 2024

Table 4	Table 4										Unit: In thousand NTD, unless otherwise specified	Unit: In thousand NTD, unless otherwise specified	Unit: In thousand NTD, unless otherwise specified
Names of investees in Mainland China Name	Principal business	Paid-in capital	Type of investment method	Accumulated investment amount remitted from Taiwan at the beginning of the period		Amount of investment remitted or recovered duringtheperiod		Accumulated investment amount remitted from Taiwan at the end of the period	Profit or loss of the investee for the period (Note 2)	Shareholding in direct or indirect investment	Investment income (loss) recognized in this period (Note 2)	Book value of investments at the end of the period	Investment income remitted back as of the end of the period
						Outward remittance	Recover
Dongguan Prosil Electronics Co.,Ltd.	Import and export of electronic components and general import and export	RMB8,048 thousand ( USD1,200 thousand )	Note 1	USD1,200 thousand ( $ 39,336 )		$ -	$ -	USD1,200 thousand ( $ 39,336 )	$ 436	100%	$ 436	$ 27,305	$ -

Accumulated amount of investment from Taiwan to Mainland China at the end of the period		Amount of investment approved by the Investment Commission, MOEA			Investment quota for Mainland China as stipulated by the Investment Commission, MOEA
US$1,200 thousand ($39,336)		US$1,200 thousand ($39,336)			$2,035,585

Note 1: The Company invests in Weltrend International Co., (BVI) Ltd. and then invests in companies through Mainland China through said company. The investments have been approved by the Investment Commission, Ministry of Economic Affairs. The investment amount approved is US$1,200 thousand.

Note 2: It was calculated based on the financial report for the same period audited by a CPA.

Note 3: The amounts were converted at an exchange rate of USD to NTD on December 31, 2024.

Weltrend Semiconductor, Inc. and Its Subsidiaries

Major Transactions with Investees in Mainland China Through Direct or Indirect Investment Through a Third Region, and the Prices, Payment Terms, Unrealized Gains or Losses, and Other Relevant Information For the Year Ended December 31, 2024

Table 5

Unit: In thousand NTD, unless otherwise specified

Names of investees in Mainland China	Type of transaction	Purchase or sale	Purchase or sale	Transaction conditions (Note)	Notes and accounts receivable(payable)	Notes and accounts receivable(payable)	Unrealized gain or loss	Remarks
		Amount	Percentage		Amount	Percentage
Dongguan Prosil Electronics Co., Ltd.	Operatingrevenues	$ 97,430	3%	`－`	$ 36,860	4%	$ -	`－`

Note: Sales with related parties are determined based on the terms negotiated by both parties without other suitable transaction counterparties for comparison.

Weltrend Semiconductor, Inc. and Its Subsidiaries

Information on major shareholders

December 31, 2024

Table 6

Information on major shareholders	Shares
	Number of shares held (shares)	Shareholding percentage
The Group has no shareholders holding more than 5% of the shares individually.	-	-

Note: The information on major shareholders in this Exhibit is compiled by Taiwan Depository & Clearing Corporation based on the last business day of the quarter in which the shareholders held 5% or more of the Company’s common shares and preferred shares whose registration and delivery have been completed in non-physical form (including treasury shares). The number of shares recorded in the Company’s consolidated financial statements and the actual number of shares registered and delivered in non-physical form may differ depending on the basis of preparation of the calculations.

AI assistant

Weltrend — Annual Report 2024

52083_rns_2024-12-27_819f2884-5ddb-47aa-80ac-d4d9c07281fc.pdf

Weltrend Semiconductor, Inc. and Its Subsidiaries

Consolidated Financial Statements and Independent Auditor’s Report For the Years Ended December 31, 2024 and 2023

§TABLE OF CONTENTS§

Representation Letter

Independent Auditor’s Report

Audit opinion

Basis of audit opinion

Key audit matters

Sales revenue recognition

Other matters

Responsibilities of the management and the governing bodies for the consolidated financial statements

Auditor's responsibilities for the audit of the consolidated financial statements

Weltrend Semiconductor, Inc. and Its Subsidiaries

Weltrend Semiconductor, Inc. and Its Subsidiaries

(Continued from previous page)

Weltrend Semiconductor, Inc. and Its Subsidiaries

Consolidated Statements of Cash Flows

(Continued from previous page)

1. Company History

2. Date and Procedures for Approval of Financial Statements

3. Application of New, Amended and Revised Standards and Interpretations

4. Summary of Significant Accounting Policies

(9) Investment property

1. Acquired separately

3. Derecognition

1. Financial assets

(1) Measurement types

A. Financial assets at fair value through profit or loss

(2) Impairment of financial assets

(3) Derecognition of financial assets

2. Equity instruments

(2) Derecognition of financial liabilities

4. Convertible corporate bonds

(14) Provisions

(15) Revenue recognition

Merchandise sales revenue

1. Short-term employee benefits

2. Retirement benefits

2. Deferred tax

3. Current and deferred tax

5. Significant Accounting Judgments and Estimations, and Main Sources of Assumption Uncertainties

6. Cash and Cash Equivalents

7. Financial Instruments Measured at Fair Value Through Profit or Loss

8. Financial assets measured at fair value through other comprehensive income

9. Financial assets at amortized cost

December 31, 2024

December 31, 2023

11. Inventory

12. Subsidiary

Sentelic Corporation

(Continued from previous page)

13. Property, plant, and equipment

(Continued from previous page)

15. Lease agreements

16. Goodwill

17. Intangible assets

18. Prepayments

19. Short-term borrowings

20. Corporate bonds payable

21. Notes payable and accounts payable

22. Other liabilities

24. Retirement benefit plans

(Continued from previous page)

25. Equity

(Continued from previous page)

26. Operating revenues

(1) Contract balance

(2) Details of net operating income

27. Net income for the year

(7) Remuneration for employees and directors

Estimate percentage

28. Income tax

2024

29. Earnings per shares

Net income for the year

Number of Shares

Unit: Thousand shares

Weltrend Annual Report 2024