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WIN WIN PRECISION TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2025 AND 2024

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

pwc

資誠

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

PWCR25000453

To Win Win Precision Technology Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Win Win Precision Technology Co., Ltd. (the “Company”) as at December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

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

Basis for opinion

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

www.pwc.tw

資誠聯合會計師事務所 PricewaterhouseCoopers, Taiwan

110208 臺北市信義區基隆路一段 333 號 27 樓

27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 110208, Taiwan

T: +886 (2) 2729 6666, F: +886 (2) 2729 6686

pwc
資訊

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters. Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2025 are stated as follows:

Recognition of revenue from major customers of solar photovoltaic modules

Description

For the accounting policies on revenue recognition, please refer to Note 4(26); and for the details of revenue, please refer to Note 6(19).

The Company is primarily engaged in the sales of solar photovoltaic modules as well as the research, development, manufacturing, and sales of semiconductor parts. For the year ended December 31, 2025, the revenue of the Company’s subsidiary (presented as investments accounted for using the equity method and other non-current liabilities) from sales of solar photovoltaic modules accounted for about 42% of its operating revenue, which was material to the parent company only financial statements. Additionally, due to changes in the global supply and demand of clean energy, the ranking of important customers of solar photovoltaic modules of the Company and its subsidiary may change, and the sales amount will also have a large increase or decrease due to the capital expenditure plan of the customers. Thus, we considered the recognition of the Company’s and its subsidiary’s revenue from major customers of solar photovoltaic modules as a key audit matter.

www.pwc.tw
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pwc
資訊

How our audit addressed the matter

We performed the following audit procedures on the recognition of revenue from major customers of solar photovoltaic modules:

Obtained an understanding and tested the design and implementation of internal controls over revenue recognition from solar photovoltaic modules, including credit evaluation of new sales customers and the statements between the Company and its subsidiaries periodically.
Obtained detailed listing of solar photovoltaic module sales revenue from the subsidiaries, and selected samples of and tested customer orders, delivery orders and receipt documents.
Selected samples to perform confirmation of accounts receivable from the subsidiaries on the balance sheet date or to inspect the recovery of accounts receivable and tested the collection after the balance sheet date.
Inspected whether there were material sales returns and discounts after the balance sheet date.

Valuation of inventories

Description

For the accounting policies of inventory, please refer to Note 4(10); and for the accounting estimates of valuation of inventory and assumption uncertainty, please refer to Note 5. For details on loss on inventory valuation, please refer to Note 6(4).

The Company is primarily engaged in the sales of solar photovoltaic modules as well as the research, development, manufacturing, and sales of semiconductor parts. Due to the rapid changes and highly competitive in the solar photovoltaic and semiconductor markets, the continuous introduction of new products may lead to fluctuations in product prices or product sales may not be as expected, which will affect the estimated net realisable value of inventory evaluation.

www.pwc.tw

pwc
資訊

The Company recognises inventories at the lower of cost and net realisable value and individually identifies whether inventories over a certain age are obsolete, poor-quality, damaged or determined as beyond repair, which often involves the management's judgments, and the aforementioned matters also exist in the Company's subsidiaries (shown as investments accounted for using the equity method and other non-current liabilities), we consider the valuation of inventory as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the inventory valuation:

Assessed the reasonableness of accounting policies and procedures in relation to inventory valuation, including the classification of inventories in determining the net realisable value and the reasonableness of determining obsolete inventories.
Inspected the Company's annual physical inventory count plan and participated in the annual inventory count in order to assess the effectiveness of the classification of obsolete inventory and internal control over obsolete inventory.
Verified the classification used by the Company to determine obsolete inventories and the amount of net realisable value, recalculated the loss of inventory and further assessed the reasonableness.

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

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

www.pwc.tw

pwc
資訊

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

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

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

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

www.pwc.tw
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pwc
資訊

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities controlled by the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

www.pwc.tw

pwc
資誠

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

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

Lin, Se-Kai
Wen, Ya-Fang
For and on behalf of PricewaterhouseCoopers, Taiwan
March 10, 2026

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

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

www.pwc.tw
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WIN WIN PRECISION TECHNOLOGY CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 799,702	35	$ 768,922	39
1110	Financial assets at fair value through profit or loss, current	6(2)	-	-	1,451	-
1140	Contract assets, current	6(19)	21,758	1	-	-
1150	Notes receivable, net	6(3)	19,715	1	1,867	-
1170	Accounts receivable, net	6(3)	331,582	15	210,104	11
1180	Accounts receivable due from related parties, net	7(2)	165,088	7	181,426	9
1200	Other receivables		612	-	665	-
1210	Other receivables due from related parties	7(2)	129	-	94	-
1220	Current income tax assets		28,271	1	26,673	2
130X	Inventories	6(4)	581,099	26	508,516	26
1410	Prepayments	6(5)	50,779	2	39,091	2
1479	Other current assets, other		393	-	1,350	-
1482	Current assets recognised from costs to fulfil contracts with customers		4,461	-	945	-
11XX	Total current Assets		2,003,589	88	1,741,104	89
Non-current assets
1550	Investments accounted for using equity method	6(6)	46,458	2	60,116	3
1600	Property, plant and equipment	6(7)	62,195	3	43,465	2
1755	Right-of-use assets	6(8)	60,473	3	41,827	2
1780	Intangible assets	6(9)	9,732	-	8,022	1
1840	Deferred income tax assets	6(26)	66,216	3	46,903	2
1900	Other non-current assets	8	19,010	1	14,044	1
15XX	Total non-current assets		264,084	12	214,377	11
1XXX	Total assets		$ 2,267,673	100	$ 1,955,481	100

(Continued)

(Dexpressed in thousands of New Taiwan dollars)

WIN WIN PRECISION TECHNOLOGY CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024

	Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(11)	$ 45,501	2	$ 38,942	2
2120	Financial liabilities at fair value through profit or loss, current	6(2)	2,656	-	-	-
2130	Contract liabilities, current	6(19)	34,028	2	8,799	-
2170	Accounts payable		175,895	8	128,674	7
2200	Other payables	6(12)	206,273	9	155,930	8
2220	Other payables due to related parties	7(2)	1,178	-	1,038	-
2230	Current income tax liabilities		34,868	2	-	-
2250	Provisions for liabilities, current	6(15)	21,537	1	10,353	-
2280	Current lease liabilities		27,676	1	18,297	1
2300	Other current liabilities		3,170	-	2,573	-
21XX	Total current Liabilities		552,782	25	364,606	18
Non-current liabilities
2550	Provisions for liabilities, non-current	6(15)	14,999	1	14,810	1
2570	Deferred income tax liabilities	6(26)	1,864	-	948	-
2580	Non-current lease liabilities		32,170	1	20,777	1
2645	Guarantee deposits received		4	-	4	-
2670	Other non-current liabilities	6(6)	3,028	-	-	-
25XX	Total non-current liabilities		52,065	2	36,539	2
2XXX	Total Liabilities		604,847	27	401,145	20
Equity
	Share capital	6(16)
3110	Ordinary shares		674,326	30	668,665	34
3140	Advance receipts for share capital		2,705	-	1,575	-
	Capital surplus	6(17)
3200	Capital surplus		568,854	25	561,084	29
	Retained earnings	6(18)
3310	Legal reserve		83,627	4	83,627	5
3320	Special reserve		34,159	1	36,633	2
3350	Undisributed retained earnings		293,985	13	236,911	12
	Other equity interest
3400	Other equity interest		5,170	-	( 34,159)	( 2)
3XXX	Total equity		1,662,826	73	1,554,336	80
	Significant contingent liabilities and unrecognised contract commitments	9
	Significant subsequent events	11
3X2X	Total liabilities and equity		$ 2,267,673	100	$ 1,955,481	100

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

WIN WIN PRECISION TECHNOLOGY CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except earnings (losses) per share)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(19) and 7(2)	$ 2,283,786	100	$ 2,236,422	100
5000	Operating costs	6(4)	( 1,529,916)	( 67)	( 1,682,621)	( 75)
5900	Gross profit		753,870	33	553,801	25
5910	Unrealized profit from sales	6(6)	( 10,103)	( 1)	( 16,414)	( 1)
5920	Realized profit from sales	6(6)	16,414	1	10,402	1
5950	Net gross profit		760,181	33	547,789	25
	Operating expenses	7(2)
6100	Selling expenses		( 272,701)	( 12)	( 286,040)	( 13)
6200	General and administrative expenses		( 202,703)	( 9)	( 202,821)	( 9)
6300	Research and development expenses		( 60,905)	( 3)	( 81,476)	( 4)
6450	Expected credit impairment loss	12(2)	( 4,466)	-	( 406)	-
6000	Total operating expenses		( 540,775)	( 24)	( 570,743)	( 26)
6900	Operating profit (loss)		219,406	9	( 22,954)	( 1)
	Non-operating income and expenses
7100	Interest income	6(20)	8,671	1	6,978	-
7010	Other income	6(21) and 7	6,584	-	5,361	-
7020	Other gains and losses	6(22)	( 61,168)	( 3)	( 9,424)	-
7050	Finance costs	6(23)	( 3,215)	-	( 5,488)	-
7070	Share of loss of associates and joint ventures accounted for using equity method	6(6)
			( 23,161)	( 1)	( 63,160)	( 3)
7000	Total non-operating income and expenses		( 72,289)	( 3)	( 65,733)	( 3)
7900	Profit (loss) before income tax		147,117	6	( 88,687)	( 4)
7950	Income tax expense	6(26)	( 18,791)	( 1)	( 1,563)	-
8200	Profit (loss) for the year		$ 128,326	5	($ 90,250)	( 4)
	Other comprehensive income (net)
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements		$ 39,329	2	$ 2,474	-
8500	Total comprehensive income (loss) for the year		$ 167,655	7	($ 87,776)	( 4)
9750	Basic earnings (losses) per share	6(27)	$	1.91	($	1.40)
9850	Diluted earnings (losses) per share	6(27)	$	1.89	($	1.40)

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

WIN WIN PRECISION TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Notes	Capital		Capital surplus	Retained Earnings			Financial statements translation differences of foreign operations	Total equity
		Ordinary shares	Advance receipts for share capital		Legal Reserve	Special Reserve	Undistributed retained earnings
Year 2024
Balance at January 1, 2024		$ 607,050	$ -	$ 444,237	$ 64,197	$ 38,509	$ 490,407	($ 36,633)	$ 1,607,767
Loss for the year		-	-	-	-	-	( 90,250 )	-	( 90,250 )
Other comprehensive income for the year		-	-	-	-	-	-	2,474	2,474
Total comprehensive (loss) income		-	-	-	-	-	( 90,250 )	2,474	( 87,776 )
Appropriation and distribution of retained earnings:	6(18)
Legal reserve appropriated		-	-	-	19,430	-	( 19,430 )	-	-
Reversal of special reserve		-	-	-	-	( 1,876 )	1,876	-	-
Cash dividends		-	-	-	-	-	( 145,692 )	-	( 145,692 )
Issuance of shares	6(16)(17)	58,000	-	100,550	-	-	-	-	158,550
Exercise of employee stock options	6(14)	3,615	1,575	4,100	-	-	-	-	9,290
Compensation cost of employee stock options	6(14)	-	-	12,197	-	-	-	-	12,197
Balance at December 31, 2024		$ 668,665	$ 1,575	$ 561,084	$ 83,627	$ 36,633	$ 236,911	($ 34,159)	$ 1,554,336
Year 2025
Balance at January 1, 2025		$ 668,665	$ 1,575	$ 561,084	$ 83,627	$ 36,633	$ 236,911	($ 34,159)	$ 1,554,336
Profit for the year		-	-	-	-	-	128,326	-	128,326
Other comprehensive income		-	-	-	-	-	-	39,329	39,329
Total comprehensive income		-	-	-	-	-	128,326	39,329	167,655
Appropriation and distribution of retained earnings	6(18)
Reversal of special reserve		-	-	-	-	( 2,474 )	2,474	-	-
Cash dividends		-	-	-	-	-	( 73,726 )	-	( 73,726 )
Exercise of employee stock options	6(14)	5,661	1,130	4,909	-	-	-	-	11,700
Compensation cost of employee stock options	6(14)	-	-	2,857	-	-	-	-	2,857
Expired dividends not claimed by shareholders	6(17)	-	-	2	-	-	-	-	2
Exercise of disgorgement	6(17)	-	-	2	-	-	-	-	2
Balance at December 31, 2025		$ 674,326	$ 2,705	$ 568,854	$ 83,627	$ 34,159	$ 293,985	$ 5,170	$ 1,662,826

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

WIN WIN PRECISION TECHNOLOGY CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before tax	$	147,117	($ 88,687)
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense (including right-of-use assets)	6(7)(8)(24)	48,624	64,330
Amortisation expense	6(24)	2,367	2,699
Expected credit impairment loss	12(2)	4,466	406
Net loss on financial assets and liabilities at fair value through profit or loss	6(2)	4,231	2,370
Interest expense	6(23)	3,215	5,488
Interest income	6(20)	( 8,671 )	( 6,978 )
Compensation cost of share-based payment	6(14)	2,857	12,197
Share of loss of associates accounted for using equity method	6(6)	23,161	63,160
Gains on disposal of property, plant and equipment	6(22)	( 2 )	( 1,090 )
Impairment loss-property, plant and equipment	6(10)(22)	-	21,465
Loss on disposal of equity-method investments	6(22)	37,939	-
Unrealized (loss) profit from sales	( 6,311 )	( 6,012 )
Gains from reversal of decommissioning liabilities	6(22)	-	2,432 )
Loss on lease modification	6(22)	-	62
Changes in operating assets and liabilities
Changes in operating assets
Contract assets, current	( 21,758 )	( 9,598 )
Notes receivable, net	( 17,848 )	( 6,368 )
Accounts receivable (include related parties)	( 109,607 )	( 21,907 )
Other receivables (include related parties)	( 416 )	( 88 )
Inventories	( 72,583 )	( 371,825 )
Prepayments	( 11,688 )	( 71,343 )
Other current assets	958	110
Assets recognised from costs to fulfil contracts with customers	( 3,516 )	( 1,320 )
Changes in operating liabilities
Financial liabilities at fair value through profit or loss, current	( 124 )	( 5,551 )
Contract liabilities, current	25,229	( 12,068 )
Accounts payable	47,221	( 11,937 )
Other payables	42,992	( 21,550 )
Provisions for liabilities	11,184	( 2,954 )
Other current liabilities	597	1,424
Cash inflow generated from operations	149,634	508,749
Interest received	9,105	6,313
Interest paid	( 3,144 )	( 5,201 )
Income tax paid	( 3,917 )	( 116,532 )
Net cash flows from operating activities	151,678	393,329

(Continued)

WIN WIN PRECISION TECHNOLOGY CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

		Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of equity interests in investee companies	6(6)	($ 18,488)	$ -
Proceeds from disposal of investments accounted for using the equity method	6(6)	19,713	-
Acquisition of property, plant and equipment	6(28)	( 37,038)	( 9,397)
Proceeds from disposal of property, plant and equipment		2	2,689
Acquisition of intangible assets	6(9)	( 4,077)	( 4,173)
Increase in guarantee deposit paid		( 6,730)	( 3,663)
Decrease in guarantee deposit paid		7,533	3,816
Net cash flows used in investing activities		( 39,085)	( 10,728)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans	6(29)	361,175	391,112
Payments of short-term loans	6(29)	( 354,616)	( 527,282)
Payments of principal portion of lease liabilities	6(29)	( 26,350)	( 33,908)
Cash dividends paid	6(18)	( 73,726)	( 145,692)
Proceeds from issuance of shares	6(16)	-	158,550
Exercise of employee stock options	6(14)	11,700	9,290
Expired dividends not claimed by shareholders	6(17)	2	-
Exercise of disgorgement	6(17)	2	-
Net cash flows used in financing activities		( 81,813)	( 147,930)
Net increase in cash and cash equivalents		30,780	234,671
Cash and cash equivalents at beginning of year		768,922	534,251
Cash and cash equivalents at end of year		$ 799,702	$ 768,922

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

WIN WIN PRECISION TECHNOLOGY CO., LTD.
NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

HISTORY AND ORGANIZATION

Win Win Precision Technology Co., Ltd. (the “Company”) was incorporated under the provisions of the Company Law of the Republic of China (R.O.C.) in November 2003 and started its operations in the same year. In December 2007, the Company expanded its business line in providing vertically integrated solar photovoltaic total solutions. The Company and its subsidiaries (collectively referred herein as “the Company”) are primarily engaged in manufacturing solar photovoltaic modules, system design, plan and integration services, as well as consumable parts of equipments for semiconductors industry, and maintenance services. The common stocks of the Company have been listed on the Taiwan Stock Exchange since May 2024.

THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only financial statements were authorized for issuance by the Board of Directors on March 10, 2026.

APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

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

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

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

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

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

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

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

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

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

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

Except for IFRS 18 whose impact will be disclosed when the assessment is complete, the above standards and interpretations have no significant impact to the Company's financial condition and financial performance based on the Company's assessment.

IFRS 18, 'Presentation and disclosure in financial statements'

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

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, these parent company only financial statements have been prepared under the historical cost convention.

B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the parent company only financial statements are measured using the currency of the primary economic environment in which the Company operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.

A. Foreign currency transactions and balance

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

(b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within “other gains and losses”.

B. Translation of foreign operations

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

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognized in other comprehensive income.

(b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Company retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

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

(4) Classification of current and non-current items

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

(a) Assets that are expected to be realised or are intended to be sold or consumed in the normal operating cycle;

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

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

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

(5) Cash equivalents

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

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

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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(8) Impairment of financial assets

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

(9) Derecognition of financial assets

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

(10) Inventories

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

(11) Investments accounted for using the equity method / associates

A. Subsidiaries are all entities controlled by the Company (including a structured entity). The Company controls an entity when the Company is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

B. Inter-company transactions, balances and unrealised gains or losses on transactions between the Company and subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

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

D. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

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E. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

F. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

G. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

H. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

I. Pursuant to Regulations Governing the preparation of Financial Reports by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owner’s equity in the parent company only financial statements shall equal to equity attributable to the owners of the parent in the consolidated financial statements.

J. At the balance sheet date, the Company performs an impairment test for an investment in an associate when there is an indication that the investment may be impaired. The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

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(12) Property, plant and equipment

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

B. Property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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

Machinery and equipment	3 ~ 10 years
Office equipment	3 ~ 5 years
Other equipment	2 ~ 6 years
Leasehold improvements	2 ~ 3 years

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

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

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

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

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

(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee; and
(d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

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

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

(14) Intangible assets

A. Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 2 to 5 years.
B. Trademarks and patents

Separately acquired trademarks and licenses are stated at historical cost. Trademarks and patents have a finite useful life and are amortized on a straight-line basis over their estimated useful lives of 9 to 20 years.

(15) Impairment of non-financial assets

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

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(16) Borrowings

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

(17) Notes and accounts payable

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

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

(18) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.

B. At initial recognition, the Company measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Company subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

(19) Derecognition of financial liabilities

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

(20) Provisions

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

(21) Employee benefits

A. Short-term employee benefits

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

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B. Pensions

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

C. Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(22) Employee share-based payments

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

(23) Income tax

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

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

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

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

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

(24) Share capital

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

(25) Dividends

Cash dividends are recorded as liabilities in the Company's financial statements in the period in which they are resolved by the Company's Board of Directors. Stock dividends are recorded as stock dividends to be distributed in the period in which they are resolved by the Company's shareholders and are reclassified to ordinary shares on the effective date of new shares issuance.

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(26) Revenue recognition

A. Sales of goods

(a) The Company manufactures and sells solar photovoltaic modules and semiconductor products. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

(b) Revenue is measured at the fair value of the consideration received or receivable taking into account of business tax, returns and discounts for the sale of goods to external customers in the ordinary course of the Company’s activities. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year for the agreements signed with customers, the Company does not adjust the transaction price to reflect the time value of money.

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

B. Service revenue

The Company provides periodically maintenance service of semiconductor equipment and system integration technology of power storage equipment, and the revenue was recognised when the services are rendered.

C. Construction revenue

(a) The Company engages in the design of solar energy system and undertakes the construction. Because the assets are controlled by customers when building. Thus, the revenue is recognised according to the proportion of incurred construction cost shown in the estimated total cost or the proportion completion degree as of the end of reporting period with reference to the contract.

(b) The Company's revenue amount will be included in the contract revenue when it is highly likely that it would not be significantly reversed. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

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(27) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises expenses for the related costs for which the grants are intended to compensate.

CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

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

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

None.

(2) Critical accounting estimates and assumptions

Valuation of inventories

As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technological innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation. For the details of valuation of inventories, please refer to Note 6.

DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 1,615	$ 980
Checking deposits and demand deposits	648,087	486,802
Time deposits	150,000	281,140
	$ 799,702	$ 768,922

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

B. The Company has no cash and cash equivalents pledged to others.

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(2) Financial assets and liabilities at fair value through profit or loss - Current

Items	December 31, 2025	December 31, 2024
Financial assets mandatorily measured at fair value through profit or loss
Forward foreign exchange contract	$ -	$ 1,451
Financial liabilities held for trading
Forward foreign exchange contracts	$ 2,656	$ -

A. The Company recognised net loss of $4,231 and $2,370 on financial assets and liabilities measured at fair value through profit or loss for the years ended December 31, 2025 and 2024, respectively.

B. The Company entered into forward foreign exchange contracts to sell AUD (buy NTD), to hedge exchange rate risk of export proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting. The summary of contracts not yet matured and entered into by the Company are as follows:

	December 31, 2025
	Contract amount (Notional principal)	Contract period
Forward foreign exchange contracts	AUD 2,980 thousand	2025/08~2026/05
	December 31, 2024
	Contract amount (Notional principal)	Contract period
Forward foreign exchange contracts	AUD 2,160 thousand	2024/09~2025/05

C. Information relating to credit risk of financial assets and liquidity risk of financial liabilities at fair value through profit or loss is provided in Notes 12(2) and (3).

(3) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 19,715	$ 1,867
Accounts receivable	$ 338,044	$ 212,084
Less: Allowance for loss	( 6,462)	( 1,980)
	$ 331,582	$ 210,104

A. Notes receivables were not past due, and the ageing of accounts receivable is provided in Note 12(2).

The Company grants credit term to customers from 8 days to 180 days after the delivery date. Ageing analysis is conducted on the basis of the number of days overdue. Please refer to Note 12 for disclosures of credit risk and information on movement of impairment and analysis of accounts receivable.

B. As of December 31, 2025 and 2024, accounts receivable (including notes receivable) were all from contracts with customers. And as of January 1, 2024, the total balance of receivables from contracts with customers amounted to $163,250 and loss allowance amounted to $1,556.

C. The Company has no notes and accounts receivable pledged to others.

D. As of December 31, 2025 and 2024, without taking into other credit enhancements, the maximum hedge to credit risk in respect of the amount that best represents the Company's notes and accounts receivable were $351,297 and $211,971, respectively.

(4) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Carrying amount
Raw materials	$ 121,089	($ 10,329)	$ 110,760
Work in process	22,569	( 89)	22,480
Finished goods	321,767	( 75,298)	246,469
Products	151,538	( 20,004)	131,534
Inventory in transit	69,856	-	69,856
	$ 686,819	($ 105,720)	$ 581,099
	December 31, 2024
	Cost	Allowance for valuation loss	Carrying amount
Raw materials	$ 106,535	($ 23,833)	$ 82,702
Work in process	17,587	( 101)	17,486
Finished goods	282,759	( 115,535)	167,224
Products	159,360	( 5,922)	153,438
Inventory in transit	87,666	-	87,666
	$ 653,907	($ 145,391)	$ 508,516

The cost of inventories recognized as expense for the period:

	Years ended December 31,
	2025	2024
Cost of goods sold	$ 1,394,248	$ 1,527,242
(Gains on reversal of) loss on decline in market value	( 39,671)	39,781
Construction costs	6,312	1,538
Loss from disposal of inventory	-	2,506
Income from sale of scraps	( 4,391)	( 2,685)
	$ 1,356,498	$ 1,568,382

For the year ended December 31, 2025, due to the sale of some inventories whose net realizable value was lower than the cost, the gain from the reversal of inventory write-down was recovered.

(5) Prepayments

	December 31, 2025	December 31, 2024
Prepayments to suppliers	$ 31,153	$ 24,993
Prepayments sales tax	3,979	1,746
Prepayments inspection fee	3,305	2,258
Other prepaid expenses	12,342	10,094
	$ 50,779	$ 39,091

(6) Investments accounted for using equity method

	2025	2024
WIN WIN Precision Technology Nanjing Co, Ltd.	$ 22,437	$ 14,847
WINAICO Delaware Co., Ltd.	20,834	12,133
WINAICO Australia PTY LTD.	1,668	1,173
WIN WIN Green Energy Co., Ltd.	1,041	1,089
WINAICO Japan K.K.	5	297
WINAICO Solar Projekt 1 GmbH	473	256
WINAICO Deutschland GmbH	(3,028)	-
WINAICO B.V.	-	30,321
	$ 43,430	$ 60,116
Add : Reclassified to Other non-current liabilities	3,028	-
	$ 46,458	$ 60,116

A. Information about subsidiaries of the Company is provided in Note 4(3) in the 2025 consolidated financial statements.
B. Due to the simplification of the investment structure, in April 2025, the consolidated subsidiary, WINAICO B.V., sold its 100% of the shares of WINAICO Deutschland GmbH and 50% of the shares of WINAICO Solar Projekt 1 GmbH to the Company for $18,488.
C. To simplify the investment structure, the subsidiary, WINAICO B.V., cancelled its registration on October 9, 2025. The Company collected the remaining investment of $19,713 and recognised loss on disposal of investment of $37,939.
D. The aforementioned investments accounted for using equity method were measured based on the associate's financial statements which were audited by independent auditors for the corresponding period. The Company recognized investment loss of $23,161 and $63,160 for using equity method for the years ended December 31, 2025 and 2024, respectively.
E. As of December 31, 2025 and 2024, the unrealized profits arising from the Company's sales of products to investee companies of $10,103 and $16,414, respectively, have been written off. And the related balance sheet account is a reduction of "investments accounted for using the equity method".

(7) Property, plant and equipment

January 1

Cost

Accumulated depreciation

At January 1

Additions

Reclassifications (Cost)

Disposals (Cost)

Disposals (Accumulated depreciation)

Depreciation charge

At December 31

December 31

Cost

Accumulated depreciation

2025

Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Total
$ 127,623	$ 17,550	$ 36,336	$ 7,497	$ 189,006
( 95,008)	( 13,857)	( 31,738)	( 4,938)	( 145,541)
$ 32,615	$ 3,693	$ 4,598	$ 2,559	$ 43,465
$ 32,615	$ 3,693	$ 4,598	$ 2,559	$ 43,465
25,596	4,268	4,270	2,872	37,006
1,872	-	-	-	1,872
( 37)	( 3,722)	( 1,520)	( 151)	( 5,430)
37	3,722	1,520	151	5,430
( 13,946)	( 2,385)	( 2,506)	( 1,311)	( 20,148)
$ 46,137	$ 5,576	$ 6,362	$ 4,120	$ 62,195
$ 155,054	$ 18,096	$ 39,086	$ 10,218	$ 222,454
( 108,917)	( 12,520)	( 32,724)	( 6,098)	( 160,259)
$ 46,137	$ 5,576	$ 6,362	$ 4,120	$ 62,195

	2024
	Machinery and equipment	Transportation equipment	Office equipment	Leasehold improvements	Other equipment	Total
January 1
Cost	$248,924	$232	$17,172	$66,221	$9,674	$342,223
Accumulated depreciation and impairment	(179,508)	(232)	(13,100)	(63,676)	(6,324)	(262,840)
	$69,416	$-	$4,072	$2,545	$3,350	$79,383
At January 1	$69,416	$-	$4,072	$2,545	$3,350	$79,383
Additions	3,124	-	1,315	4,311	539	9,289
Reclassifications (Cost)	947	-	-	-	-	947
Disposals (Cost)	(125,372)	(232)	(937)	(34,196)	(2,716)	(163,453)
Disposals (Accumulated depreciation and impairment)	124,024	232	937	34,196	2,465	161,854
Depreciation charge	(18,059)	-	(1,694)	(2,258)	(1,079)	(23,090)
Impairment loss	(21,465)	-	-	-	-	(21,465)
At December 31	$32,615	$-	$3,693	$4,598	$2,559	$43,465
December 31
Cost	$127,623	$-	$17,550	$36,336	$7,497	$189,006
Accumulated depreciation	(95,008)	-	(13,857)	(31,738)	(4,938)	(145,541)
	$32,615	$-	$3,693	$4,598	$2,559	$43,465
A. For the impairment of property, plant and equipment, please refer to Note 6(10).
B. The Company has no property, plant and equipment pledged to others.

(8) Lease arrangements—lessee

A. The Company leases various assets including buildings, business vehicles and computer equipment. Rental contracts are typically made for periods of 2 to 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes. Additionally, under the lease agreement, the Company has obligations for the restoration of the assets upon termination of the lease. Information relating to decommissioning liabilities is provided in Note 6(15).

B. Short-term leases with a lease term of 12 months or less comprise certain buildings.

C. The movements of right-of-use assets of the Company are as follows:

	2025
	Buildings and structures	Transportation equipment	Office equipment	Total
At January 1	$ 25,780	$ 15,296	$ 751	$ 41,827
Additions	16,026	31,096	-	47,122
Depreciation charge	( 21,205)	( 6,520)	( 751)	( 28,476)
At December 31	$ 20,601	$ 39,872	$ -	$ 60,473
	2024
	Buildings and structures	Transportation equipment	Office equipment	Total
At January 1	$ 50,955	$ 6,713	$ 1,752	$ 59,420
Additions	10,639	13,904	-	24,543
Depreciation charge	( 34,918)	( 5,321)	( 1,001)	( 41,240)
Lease modification	( 896)	-	-	( 896)
At December 31	$ 25,780	$ 15,296	$ 751	$ 41,827

D. Information on profit or loss in relation to lease contracts is as follows:

	Years ended December 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 1,366	$ 992
Expense on short-term lease contracts	20,494	33,621
Loss on lease modification	-	62

E. For the years ended December 31, 2025 and 2024, the Company's total cash outflow for leases were $48,210 and $68,521, respectively.

~34~

(9) Intangible assets

	2025
	Software	Trademarks	Patents	Total
January 1
Cost	$ 14,081	$ 2,330	$ 1,124	$ 17,535
Accumulated amortization	( 7,656)	( 1,380)	( 477)	( 9,513)
	$ 6,425	$ 950	$ 647	$ 8,022
At January 1	$ 6,425	$ 950	$ 647	$ 8,022
Additional-acquired separately	3,939	-	138	4,077
Disposals (Cost)	( 5,954)	-	-	( 5,954)
Disposals (Accumulated amortization)	5,954	-	-	5,954
Amortization charge	( 2,122)	( 157)	( 88)	( 2,367)
At December 31	$ 8,242	$ 793	$ 697	$ 9,732
December 31
Cost	$ 12,066	$ 2,330	$ 1,262	$ 15,658
Accumulated amortization	( 3,824)	( 1,537)	( 565)	( 5,926)
	$ 8,242	$ 793	$ 697	$ 9,732
	2024
	Software	Trademarks	Patents	Total
January 1
Cost	$ 10,898	$ 2,620	$ 1,134	$ 14,652
Accumulated amortization	( 5,851)	( 1,513)	( 740)	( 8,104)
	$ 5,047	$ 1,107	$ 394	$ 6,548
At January 1	$ 5,047	$ 1,107	$ 394	$ 6,548
Additional-acquired separately	3,854	-	319	4,173
Disposals (Cost)	( 671)	( 290)	( 329)	( 1,290)
Disposals (Accumulated amortization)	671	290	329	1,290
Amortization charge	( 2,476)	( 157)	( 66)	( 2,699)
At December 31	$ 6,425	$ 950	$ 647	$ 8,022
December 31
Cost	$ 14,081	$ 2,330	$ 1,124	$ 17,535
Accumulated amortization	( 7,656)	( 1,380)	( 477)	( 9,513)
	$ 6,425	$ 950	$ 647	$ 8,022

A. Details of amortization on intangible assets are as follows:

	Years ended December 31,
	2025	2024
Operating costs	$ 54	$ 888
Selling expenses	157	157
Administrative expenses	1,851	1,363
Research and development expenses	305	291
	$ 2,367	$ 2,699

B. The Company has no intangible assets pledged to others.

(10) Impairment of non-financial assets (For the year ended December 31, 2025: Nil)

A. The Company recognised impairment loss in the year ended December 31, 2024. Details are as follows:

	Year ended December 31, 2024
Impairment loss - machinery and equipment	$ 21,465

B. In response to the rapid technological innovations and fluctuation in market price of the solar module, the Company adjusted its solar energy business strategies. For certain equipment which did not meet the operating plan, the Company assessed the recoverable amounts. Additionally, the Company recognised the differences between the recoverable amounts and the book value as impairment loss amounting to $21,465 for the year ended December 31, 2024.

(11) Short-term borrowings

Type of borrowings	December 31, 2025	December 31, 2024
Bank borrowings
Unsecured borrowings	$ 45,501	$ 38,942
Interest rate range	2.76%~2.97%	3.65%~4.29%

(12) Other payables

	December 31, 2025	December 31, 2024
Salary and year-end bonus payable	$ 133,089	$ 102,867
Customs and miscellaneous payable	12,738	15,564
Equipment payable	9,987	2,378
Labor and National Health insurance payable	7,323	5,856
Service payable	4,924	3,937
Pension expense payable	4,441	3,544
Utilities payable	2,501	1,552
Rents payable	2,146	3,540
Others	29,124	16,692
	$ 206,273	$ 155,930

(13) Pensions

A. The Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

B. The pension costs under the defined contribution pension plans of the Company for the years ended December 31, 2025 and 2024 were $14,819 and $13,286, respectively.

(14) Share-based payment

A. The Company’s employees can receive share-based payment as part of the reward plan; Employees receive equity instruments as considerations for services rendered, and these transactions are equity-settled share-based payment transactions.

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

Type of arrangement	Grant date	Grant quantity (in thousand)	Contract period	Vesting condition
Employee option plan	2022.08.11	2,250	5 years	(Note)
Cash capital increase reserved for employee preemption	2024.04.25	580	-	Vested immediately

(Note) The Company issues new shares when employees exercise options. The vesting period of option and exercisable ratio are as follows:

Vesting period of option	Accumulated ratio of exercisable stock option
After 2 years	50%
After 3 years	80%
After 4 years	100%

C. Details of the share-based payment arrangements of 2022 are as follows:

	Year ended December 31, 2025
	No. of options (in thousand)	Weighted-average exercise price (in dollars)
Options outstanding at January 1	1,455	$ 17.9
Options exercised	( 679)	17.2
Options forfeited	( 46)
Options expired	( 33)
Options outstanding at December 31	697	17.2
Options exercisable at December 31	323

	Year ended December 31, 2024
	No. of options (in thousand)	Weighted-average exercise price (in dollars)
Options outstanding at January 1	2,160	$ 19.5
Options exercised	( 519)	17.9
Options forfeited	( 107)
Options expired	( 79)
Options outstanding at December 31	1,455	17.9
Options exercisable at December 31	472

As of December 31, 2025 and 2024, the exercise prices of stock options outstanding were $17.2 and $17.9 (in dollars); the remaining contractual periods were 1.6 and 2.6 years, respectively.

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

Type of arrangement	Stock price (in dollars)	Exercise price (in dollars) (Note 1)	Expected price Volatility (Notes 2)	Expected option life (Note 3)	Expected dividends (Note 4)	Risk-free interest rate (Note 5)	Fair value per unit (in dollars)
Employee stock options (Grant date:2022.8.11)
Manager
After 2 years	$ 30	$ 22.6	50.40%	4.36years	0.63%	1.01%	$ 14.82
After 3 years	30	22.6	49.16%	4.63years	0.63%	1.02%	14.74
After 4 years	30	22.6	49.06%	4.84years	0.63%	1.03%	14.74
General employee
After 2 years	$ 30	$ 22.6	51.45%	4.02years	0.63%	1.00%	$ 14.59
After 3 years	30	22.6	50.04%	4.43years	0.63%	1.02%	14.71
After 4 years	30	22.6	49.10%	4.76years	0.63%	1.03%	14.71
Type of arrangement	Stock price (in dollars)	Exercise price (in dollars)	Expected price Volatility (Notes 2)	Expected option life	Expected dividends	Risk-free interest rate (Note 6)	Fair value per unit (in dollars)
Cash capital increase reserved for employee preemption (Grant date:2024.4.25)	$ 30.1	$ 24.0	33.75%	0.02 year	-	1.22%	$ 6.12

Note 1: If there is any change to the Company's ordinary shares such as cash capital increase, stock dividend issuance, consolidation or issuance of new shares in exchange for shares of other companies, the exercise price will be adjusted in accordance with the terms of issuance of employee stock options.

Note 2: It is based on the stock price volatility during the historical expected duration of comparable companies.

Note 3: It is calculated by using the literature published by Hull White (2002).

Note 4: It is based on the average historical yield rate of comparable companies.

Note 5: It is based on the risk-free interest rate of central government bonds during the expected duration.

Note 6: It is based on the fixed rate for a one-month to three-month time deposit offered by the Directorate General of the Postal Remittances and Savings Bank.

F. Expenses incurred on equity-settled share-based payment transactions are shown below:

	Years ended December 31,
	2025	2024
Compensation costs of employee stock options	$ 2,857	$ 8,650
Compensation costs of capital increase	-	3,547
	$ 2,857	$ 12,197

(15) Provisions for liabilities

	2025
	Warranty	Decommissioning liabilities	Total
At January 1	$ 10,353	$ 14,810	$ 25,163
Additional provisions	15,906	189	16,095
Utilisation/reversal during the year	( 4,722)	-	( 4,722)
At December 31	$ 21,537	$ 14,999	$ 36,536
	2024
	Warranty	Decommissioning liabilities	Total
At January 1	$ 11,994	$ 18,123	$ 30,117
Additional provisions	8,936	434	9,370
Utilisation/reversal during the year	( 10,577)	( 3,747)	( 14,324)
At December 31	$ 10,353	$ 14,810	$ 25,163

Analysis of total provisions:

	December 31, 2025	December 31, 2024
Current	$ 21,537	$ 10,353
Non-current	$ 14,999	$ 14,810

A. Warranty

The Company's provision for warranty which was related to the sale of solar photovoltaic modules was based on historical warranty data and management's judgements. The Company estimated the provision for warranty will be used within the next year.

B. Decommissioning liabilities

According to the Company's lease contract for the plant, the Company bears dismantling, removing the asset and restoring the site obligations. A provision is recognised for the present value of costs to be incurred for dismantling, removing the asset and restoring the site. The Company estimated the liabilities provision will be paid when moving the plant.

(16) Share capital

A. As of December 31, 2025 and 2024, the Company's authorized capital was $1,200,000, consisting of 120,000 thousand shares of ordinary stock (including 2,250 thousand shares reserved for employee stock options), and the paid-in capital were $674,326 and $668,665, respectively, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number of the Company's ordinary shares outstanding are as follows:

| | 2025
(in thousands) | 2024
(in thousands) |
| --- | --- | --- |
| At January 1 | 66,867 | 60,705 |
| Cash capital increase | - | 5,800 |
| Exercise of employee stock options | 566 | 362 |
| At December 31 | 67,433 | 66,867 |

B. For the underwriting of the new listed shares, the Board of Directors of the Company during their meeting on March 12, 2024 adopted a resolution to increase the Company's capital by issuing 5,800 thousand ordinary shares with a par value of $10 (in dollars) per share. The Chairman was authorized to set the effective date as May 7, 2024 and the registration had been completed.

C. For the year ended December 31, 2024, the Company's employee share options was exercised by 519 thousand shares, of which 157 thousand shares were resolved by the Board of Directors on February 26, 2025. The effect date of abovementioned shares was set as March 5, 2025.

D. For the year ended December 31, 2025, the Company's employee share options was exercised by 679 thousand shares, of which 270 thousand shares were resolved by the Board of Directors on March 10, 2026. The effect date of abovementioned shares was set as March 27, 2026.

(17) Capital surplus

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

	2025
	Additional paid-in capital in excess of par, ordinary share	Employee stock options	Expired stock options	Others	Total
At January 1	$ 540,700	$ 16,949	$ 3,435	$ -	$ 561,084
Share-based compensation costs	-	2,857	-	-	2,857
Exercise employee stock options	14,901	( 9,992)	-	-	4,909
Expired employee stock options	-	( 489)	489	-	-
Expired unclaimed dividends	-	-	-	2	2
Exercise of disgorgement	-	-	-	2	2
At December 31	$ 555,601	$ 9,325	$ 3,924	$ 4	$ 568,854
	2024
	Additional paid-in capital in excess of par, ordinary share	Employee stock options	Expired stock options	Others	Total
At January 1	$ 427,133	$ 17,104	$ -	$ -	$ 444,237
Cash capital increase	101,830	( 1,280)	-	-	100,550
Share-based compensation costs	-	12,197	-	-	12,197
Exercise employee stock options	11,737	( 7,637)	-	-	4,100
Expired employee stock options	-	( 3,435)	3,435	-	-
At December 31	$ 540,700	$ 16,949	$ 3,435	$ -	$ 561,084

(18) Retained earnings

A. Under the Company's Articles of Incorporation adopted by the shareholders during their meeting, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then $10\%$ of the remaining amount shall be set aside as legal reserve until the amount of legal reserve is equal to the amount of total capital. After the provision or reversal of special reserve, the appropriation of the remaining earnings along with the unappropriated earnings of prior years shall be proposed by the Board of Directors and approved by the shareholders. Every year, the distributable retained earnings should be distributed not lower than $30\%$ as shareholders' dividend. However, when the distributable earnings is lower than $3\%$ of paid-in capital, it may be resolved to transfer it to retained earnings and not to be distributed. When distributing retained earnings, cash dividends should not lower than $20\%$ of total dividend, but shareholders may adjust it according to the actual profit and future capital plan.

B. The Company's dividend policy adopts a prudent and balanced principle, based on capital requirements, industry growth characteristics, interests of the shareholders, the balance of dividends and long-term financial planning. The dividend policy proposed by the Board of Directors is submitted to the shareholders for approval.

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

D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

E. (a) The appropriations of earnings of 2024 and 2023 resolved by shareholders on May 28, 2025 and May 30, 2024, respectively, are as follows:

	Year 2024		Year 2023
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Legal reserve appropriated	$ -		$ 19,430
Reversal of special reserve	( 2,474)		( 1,876)
Cash dividends	73,726	$ 1.10	145,692	$ 2.40

(b) Details of 2025 earnings appropriation by the Board of Directors on March 10, 2026 is as follows:

	Amount	Dividends per share (in dollars)
Legal reserve appropriated	$ 12,833
Reversal of special reserve	( 34,159)
Cash dividends	94,811	$ 1.40

(c) Information about the appropriation of retained earnings of the Company as proposed by the Board of Directors and resolved by the shareholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(19) Operating revenue

	Years ended December 31,
	2025	2024
Sales of goods contract	$ 2,042,977	$ 2,068,291
Service contract	206,475	153,883
Construction contract	34,334	14,248
	$ 2,283,786	$ 2,236,422

A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of construction control and render service over time, and transfer of products and services at a point in time in the following major product lines and geographical regions:

Year 2025	Taiwan		Europe	Others		Total
	Solar energy	Semiconductor	Solar energy	Solar energy	Semiconductor
Sales of goods contract	$ 190,803	$ 488,640	$ 632,608	$ 129,700	$ 601,226	$ 2,042,977
Service contract	-	206,475	-	-	-	206,475
Construction contract	34,334	-	-	-	-	34,334
	$ 225,137	$ 695,115	$ 632,608	$ 129,700	$ 601,226	$ 2,283,786
Revenue recognition:
At a point in time	$ 190,803	$ 695,115	$ 632,608	$ 129,700	$ 601,226	$ 2,249,452
Over time	34,334	-	-	-	-	34,334
	$ 225,137	$ 695,115	$ 632,608	$ 129,700	$ 601,226	$ 2,283,786
Year 2024	Taiwan		Europe	Others		Total
	Solar energy	Semiconductor	Solar energy	Solar energy	Semiconductor
Sales of goods contract	$ 197,310	$ 343,412	$ 835,378	$ 147,790	$ 544,401	$ 2,068,291
Service contract	137	153,746	-	-	-	153,883
Construction contract	14,248	-	-	-	-	14,248
	$ 211,695	$ 497,158	$ 835,378	$ 147,790	$ 544,401	$ 2,236,422
Revenue recognition:
At a point in time	$ 197,447	$ 497,158	$ 835,378	$ 147,790	$ 544,401	$ 2,222,174
Over time	14,248	-	-	-	-	14,248
	$ 211,695	$ 497,158	$ 835,378	$ 147,790	$ 544,401	$ 2,236,422

B. Contract assets and liabilities

The Company has recognized the following revenue-related contract assets and liabilities:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract assets:
Construction contract	$ 21,758	$ -
Contract liabilities:
Sales of goods contract	$ 19,480	$ 7,618	$ 16,862
Construction contract	14,548	1,181	4,005
	$ 34,028	$ 8,799	$ 20,867

(a) Significant changes in contract assets and liabilities

The Company's liabilities from solar module sales contract changed due to the impact from the business cycle of the domestic solar photovoltaic modules market. The changes of contract assets and contract liabilities of solar system design and construction mainly were the difference between the completion of construction performance obligation and the timing of customers' payment.

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

	Years ended December 31,
	2025	2024
Sales of goods contract	$ 4,115	$ 13,527
Service contract	1,181	2,871
	$ 5,296	$ 16,398

As of December 31, 2025, the total price of the Company's unperformed performance obligation was $63,976, will continuously be recognised as revenue following the completion of design and construction of solar system, the construction was expected to be completed in 2026.

(20) Interest income

	Years ended December 31,
	2025	2024
Interest income from bank	$ 8,552	$ 6,847
Other interest income	119	131
	$ 8,671	$ 6,978

(21) Other income

	Years ended December 31,
	2025	2024
Government grant	$ 5,671	$ 3,821
Others	913	1,540
	$ 6,584	$ 5,361

(22) Other gains and losses

	Years ended December 31,
	2025	2024
Loss on disposal of equity-method investments	($ 37,939)	$ -
Net exchange (losses) gains	( 18,875)	11,006
Net gains (losses) on financial assets and liabilities at fair value through profit or loss	( 4,231)	( 2,370)
Gains on disposals of property, plant and equipment	2	1,090
Gains from reversal of decommissioning liabilities	-	2,432
Impairment loss - property, plant and equipment	-	( 21,465)
Loss on lease modification	-	( 62)
Others	( 125)	( 55)
	($ 61,168)	($ 9,424)

(23) Finance costs

	Years ended December 31,
	2025	2024
Interest expense
Bank loan	$ 1,660	$ 4,062
Lease liabilities	1,366	992
Decommissioning liabilities	189	434
	$ 3,215	$ 5,488

(24) Additional information of expenses by nature

	Years ended December 31,
	2025	2024
Employee benefit expense	$ 457,785	$ 410,754
Transportation and charges for exports	87,470	100,211
Depreciation charges on right-of-use assets	28,476	41,240
Charges for services	24,781	29,094
Operating lease expense	20,494	33,621
Depreciation charges on property, plant and equipment	20,148	23,090
Amortization charges on intangible assets and non-current assets	2,367	2,699
	$ 641,521	$ 640,709

(25) Employee benefit expense

	Years ended December 31,
	2025	2024
Wages and salaries	$ 383,789	$ 336,177
Labor and health insurance fees	34,758	30,684
Pension costs	14,819	13,286
Share-based compensation cost	2,857	12,197
Directors’ remuneration	1,956	1,000
Other personnel expenses	19,606	17,410
	$ 457,785	$ 410,754

A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors' remuneration. The ratio shall be 3% to 10% for employees' compensation with no lower than 20% of amount distributed as rank-and-file employees compensation and shall not be higher than 2% for directors' remuneration.

B. For the years ended December 31, 2025 and 2024, employees' compensation were accrued at $4,572 and $0, respectively; while directors' remuneration were accrued at $755 and $0 respectively. The aforementioned amounts were recognised in salary expenses.

The employees' compensation and directors' remuneration were accrued based on 3% and 0.5% for the year ended December 31, 2025, respectively.

For the year ended December 31, 2024, the Company did not accrue employees' remuneration and directors' remuneration due to operating losses, which were in alignment with the 2024 financial statements.

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

(26) Income tax

A. Income tax expense

Components of income tax expense:

	Years ended December 31,
	2025	2024
Current tax:
Current tax on profits for the year	$ 38,786	$ 6,102
(Overestimation) underestimation of income tax in prior years	( 1,598)	2,809
Tax on undistributed earnings	-	1,553
Total current tax	37,188	10,464
Deferred tax:
Origination and reversal of temporary differences	( 18,397)	( 8,901)
Income tax expense	$ 18,791	$ 1,563

B. Reconciliation between income tax expense and accounting profit

	Years ended December 31,
	2025	2024
Tax calculated based on profit (loss) before tax and statutory tax rate	$ 29,423	($ 17,738)
Items adjusted by tax regulation	2,701	1,574
(Overestimation) underestimation of income tax in prior years	( 1,598)	2,809
Temporary differences not recognised as deferred tax assets	12,220	12,632
Change in assessment of realisation of deferred tax assets	( 23,705)	733
Tax on undistributed earnings	-	1,553
Others	( 250)	-
Income tax expense	$ 18,791	$ 1,563

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

	2025
	January 1	Recognized in profit or loss	December 31
Deferred tax assets
Loss from investments accounted for using equity-method	$ -	$ 23,705	23,705
Unrealized inventory loss	29,078	( 7,934)	21,144
Tax difference from sales profit	10,954	360	11,314
Unrealized warranty expenses	2,071	2,236	4,307
Decommissioning liability provisions	2,962	38	3,000
Allowance for credit losses	399	893	1,292
Unrealized loss on financial instruments	-	531	531
Unrealized foreign exchange losses	681	( 681)	-
Others	758	165	923
Subtotal	46,903	19,313	66,216
Deferred tax liabilities
Unrealized foreign exchange gain	-	( 1,582)	( 1,582)
Tax difference in right-of-use assets	( 658)	376	( 282)
Unrealized gains on financial instruments	( 290)	290	-
Subtotal	( 948)	( 916)	( 1,864)
Total	$ 45,955	$ 18,397	$ 64,352
	2024
	January 1	Recognized in profit or loss	Deferred tax assets
Deferred tax assets
Unrealized inventory loss	$ 21,122	$ 7,956	$ -
Tax difference from sales profit	9,929	1,025	-
Decommissioning liability provisions	1,432	( 604)	2,134
Unrealized warranty expenses	2,399	( 328)	-
Unrealized foreign exchange losses	-	681	-
Tax difference in doubtful accounts	318	81	-
Impairment loss recognised in equipment	821	( 821)	-
Others	1,164	( 406)	-
Subtotal	37,185	7,584	2,134
Deferred tax liabilities
Tax difference in right-of-use assets	-	1,476	( 2,134)
Unrealized gains on financial instruments	-	( 290)	-
Unrealized foreign exchange gain	( 131)	131	-
Subtotal	( 131)	1,317	( 2,134)
Total	$ 37,054	$ 8,901	$ -

D. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax assets and liabilities. The relevant amounts are listed as follows:

	December 31, 2025	December 31, 2024
Unrecognised deferred tax assets	$ 540,800	$ 656,822
Unrecognised deferred tax liabilities	$ 13,417	$ 5,875

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

(27) Earnings (losses) per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to owners of the parent	$ 128,326	67,074	$ 1.91
Diluted earnings per share
Dilutive effect of potential ordinary shares
Employees stock option		632
Employees compensation		122
Profit attributable to owners of the parent plus dilutive effect of potential ordinary shares	$ 128,326	67,828	$ 1.89
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Losses per share (in dollars)
Basic losses per share
Deficit attributable to owners of the parent	($ 90,250)	64,602	($ 1.40)
Diluted losses per share (Note)
Deficit attributable to owners of the parent plus dilutive effect of potential ordinary shares	($ 90,250)	64,602	($ 1.40)

Note: The Company’s potential ordinary shares included in the 2023 employees’ compensation and the 2022 employee stock options had anti-dilutive effect, so they are not listed on the diluted losses per share for the year ended December 31, 2024.

(28) Supplemental cash flow information

Investing activities with partial cash payments:

	Years ended December 31,
	2025	2024
Purchase of property, plant and equipment(Note)	$ 38,878	$ 10,236
Add: Opening balance of payable on equipment	2,378	740
Ending balance of prepayment for equipment	7,641	1,872
Less: Ending balance of payable on equipment	( 9,987)	( 2,378)
Opening balance of prepayment for equipment	( 1,872)	( 1,073)
Cash paid during the year	$ 37,038	$ 9,397

Note: Including reclassifications of property, plant and equipment.

(29) Changes in liabilities from financing activities

	2025
	Short-term borrowings	Lease liabilities	Liabilities from financing activities - gross
At January 1	$ 38,942	$ 39,074	$ 78,016
Changes in cash flow from financing activities	6,559	( 26,350)	( 19,791)
Interest expense paid (Note)	-	( 1,366)	( 1,366)
Changes in other non-cash items	-	48,488	48,488
At December 31	$ 45,501	$ 59,846	$ 105,347
	2024
	Short-term borrowings	Lease liabilities	Liabilities from financing activities - gross
At January 1	$ 175,112	$ 49,273	$ 224,385
Changes in cash flow from financing activities	( 136,170)	( 33,908)	( 170,078)
Interest expense paid (Note)	-	( 992)	( 992)
Changes in other non-cash items	-	24,701	24,701
At December 31	$ 38,942	$ 39,074	$ 78,016

Note: Shown as cash flows from operating activities.

~50~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
WINAICO Australia PTY LTD.(WINAICO AUSTRALIA)	The Company’s subsidiary
WINAICO Japan K.K. (WINAICO Japan)	The Company’s subsidiary
WIN WIN Precision Technology Nanjing Co, Ltd.(WIN WIN Najing)	The Company’s subsidiary
WIN WIN Green Energy Co.,Ltd.	The Company’s subsidiary
WINAICO Delaware Co., Ltd.(WINAICO Delaware)	The Company’s subsidiary
WINAICO Deutschland GmbH (WINAICO Deutschland)	The Company’s second-tier subsidiary
Hefei Chenling Technology Co., Ltd.	The Subsidiary’s associate (Note)
Directors, general managers and vice general manager	The Company’s key management

Note: In the middle of December 2025, as the Company’s subsidiary lost its control over Hefei Chenling Technology Co., Ltd., the Company reclassified the investment into “Financial assets at fair value through other comprehensive income” measured at fair value as of December 31. Disclosures of related party transactions still pertain to 2025.

(2) Significant related party transactions

A. Operating revenue - sales of goods

	Years ended December 31,
	2025	2024
WINAICO Deutschland	$ 632,608	$ 835,378
Subsidiaries	129,699	147,789
Associate	64,283	11,854
	$ 826,590	$ 995,021

The Company's sales price to related parties is based on the agreed selling price, and the payment condition is that the payment will be received within 60~150 days after sale. There is no material difference between the transaction price and the payment terms of the sale of goods and those of non-related parties. The transaction price and payment terms for the sale of raw materials have no comparable transactions of the same type within the Company for reference.

B. Non-operating revenue - rental income

Under the consideration of business expansion for domestic subsidiaries, the Company subleased offices to the subsidiaries and collected rents monthly. For the years ended December 31, 2025 and 2024, the Company recognised rental income in the amounts of $23 and $23, respectively.

C. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable :
WINAICO Deutschland	$ 70,290	$ 88,067
WINAICO AUSTRALIA	94,798	87,200
Hefei Chenling Technology Co., Ltd.	-	6,175
Less : Allowance for losses	-	( 16)
	$ 165,088	$ 181,426
Other receivables :
WINAICO Deutschland	$ 89	$ -
WINAICO AUSTRALIA	40	12
Hefei Chenling Technology Co., Ltd.	-	82
	$ 129	$ 94

(a) An aging analysis of accounts receivable from subsidiaries, based on the number of past due days, is as follows:

	December 31, 2025	December 31, 2024
Without past due	$ 158,138	$ 162,034
Up to 1- 60 days	6,950	13,233
	$ 165,088	$ 175,267

(b) As of December 31, 2024, the Company's accounts receivable due from associates were $6,175, and allowance for losses amounted to $16, respectively. The ageing analysis of accounts receivable based on past due date is as follows:

	December 31, 2024
Without past due	$ 6,175

(c) The aforementioned other receivables arise from purchases or payments made on behalf of subsidiaries for their operational needs, and were not past due.

D. Operating expenses

	Years ended December 31,
	2025	2024
Service expense :
WIN WIN Nanjing	$ 5,532	$ 5,426
Advertisement expense :
Subsidiaries	$ 4	$ 4

Service fees arose from the Company commissioning its subsidiaries to manage and supervise suppliers' production quality on site. The service consideration was made based on mutual agreement and the payment terms would be available to third parties.

E. Accounts payable due to related parties

	December 31, 2025	December 31, 2024
Other accounts payable
Subsidiaries	$ 1,178	$ 1,038

Due to operational needs, the Company entrusts related parties to provide labor services or disbursement expenses on their behalf.

F. Information on the provision of endorsements and guarantees to subsidiary is provided in Note 13.

(3) Key management compensation

	Years ended December 31,
	2025	2024
Short-term employee benefits	$ 78,899	$ 68,727
Share-based payments	1,550	3,916
Post-employment benefits	920	995
	$ 81,369	$ 73,638

8. PLEDGED ASSETS

The Company's assets pledged at book value are as follows:

Pledged asset	Purpose	December 31, 2025	December 31, 2024
Guarantee deposits paid
(shown as other non-current assets)	Custom deposits and guarantees for lease	$ 11,369	$ 12,172

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

A. The amounts of the performance letters of guarantee for purchase of goods are as follows:

Unused letters of guarantee	December 31, 2025	December 31, 2024
	$ 52,461	$ 83,899

B. As of December 31, 2025, the amount of contracted but not yet paid commitments for the purchase of equipment and software was $21,044.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS

Information about the appropriations of 2025 earnings of the Company is provided in Note 6(18).

~53~

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ -	$ 1,451
Financial assets at amortized cost/loans and receivables
Cash and cash equivalents	$ 799,702	$ 768,922
Notes receivable	19,715	1,867
Accounts receivable (including related parties)	496,670	391,530
Other receivables (including related parties)	741	759
Guarantee deposits paid	11,369	12,172
	$ 1,328,197	$ 1,175,250
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading	$ 2,656	$ -
Financial liabilities at amortized cost
Short-term borrowings	45,501	38,942
Accounts payable	175,895	128,674
Other accounts payable (including related parties)	207,451	156,968
	$ 428,847	$ 324,584
Lease liabilities	$ 59,846	$ 39,074

B. Financial risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk), credit risk and liquidity risk. To minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are used to hedge certain exchange rate risk. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

(b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions of various functional currency, which are different with the Company and its subsidiaries’ primarily with respect to the USD, EUR, AUD, and RMB. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.

ii. Management has set up a policy to require Company entities to manage their foreign exchange risk against their functional currency. The entities are required to hedge their entire foreign exchange risk exposure with the Company treasury. Exchange rate risk is measured through a forecast of highly probable foreign currency expenditures. Forward foreign exchange contracts are adopted to minimize the volatility of the exchange rate affecting expected export proceeds.

iii. The Company hedges foreign exchange rate by using forward exchange contracts. However, the Company does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

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

~54~

	December 31, 2025
(Foreign currency :functional currency)	Foreign currency amount(in thousands)	Exchange rate	Book value(NTD)
Financial Assets
Monetary items
EUR:NTD	$4,257	36.90	$157,083
USD:NTD	9,204	31.43	289,282
AUD:NTD	4,906	21.01	103,075
RMB:NTD	2,213	4.50	9,950
Investments accounted for using the
equity method
USD:NTD	$663	31.43	$20,834
RMB:NTD	4,990	4.50	22,437
Financial Liabilities
Monetary items
EUR:NTD	$3,630	36.90	$133,947
USD:NTD	888	31.43	27,910
RMB:NTD	1,861	4.50	8,367
Other non-current liabilities
EUR:NTD	$82	36.90	$3,028
	December 31, 2024
(Foreign currency :functional currency)	Foreign currency amount(in thousands)	Exchange rate	Book value(NTD)
Financial Assets
Monetary items
EUR:NTD	$4,616	34.14	$157,590
USD:NTD	9,990	32.79	327,522
AUD:NTD	4,924	20.39	100,400
RMB:NTD	1,462	4.48	6,547
Investments accounted for using the
equity method
EUR:NTD	$896	34.14	$30,577
USD:NTD	370	32.79	12,133
RMB:NTD	3,316	4.48	14,847
Financial Liabilities
Monetary items
EUR:NTD	$3,204	34.14	$109,385
USD:NTD	572	32.79	18,753
RMB:NTD	2,756	4.48	12,341

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

	Year ended December 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial Assets
Monetary items
EUR:NTD	1%	$ 1,571	$ -
USD:NTD	1%	2,893	-
AUD:NTD	1%	1,031	-
RMB:NTD	1%	100	-
Financial Liabilities
Monetary items
EUR:NTD	1%	$ 1,339	$ -
USD:NTD	1%	279	-
RMB:NTD	1%	84	-
	Year ended December 31, 2024
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial Assets
Monetary items
EUR:NTD	1%	$ 1,576	$ -
USD:NTD	1%	3,275	-
AUD:NTD	1%	1,004	-
RMB:NTD	1%	65	-
Financial Liabilities
Monetary items
EUR:NTD	1%	$ 1,094	$ -
USD:NTD	1%	188	-
RMB:NTD	1%	123	-

(b) Cash flow and fair value interest rate risk

i. The Company's main interest rate risk arises from short-term with variable rates, which expose the Company to cash flow interest rate risk. As of December 31, 2025 and 2024, the Company's borrowings at variable rate were mainly denominated in NTD and Euro.

ii. The Company’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

iii. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit, net of tax for the years ended December 31, 2025 and 2024 would have increased/decreased by $91 and $78, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

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

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

iii. The Company adopts assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition; the default occurs when the contract payments are past due over 180 days.

iv. The following indicators are used to determine whether the credit impairment of financial assets has occurred:

(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;

(ii) A breach of contract.

v. The Company classifies customers’ accounts receivable in accordance with customer types. The Company applies the simplified approach to estimate expected credit loss under the provision matrix basis.

~57~

vi. The Company used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2025 and 2024, the provision matrix is as follows:

At December 31, 2025	Not past due	Up to 60 days past due	61 to 120 days past due	121 to 180 days past due	Over 181 days past due	Total
Expected loss rate	0.41%	6.89%	33.64%	69.95%	100%
Total book value	$ 292,157	$ 39,730	$ 5,188	$ 629	$ 340	$ 338,044
Loss allowance	$ 1,199	$ 2,738	$ 1,745	$ 440	$ 340	6,462
At December 31, 2024	Not past due	Up to 60 days past due	61 to 120 days past due	121 to 180 days past due	Over 181 days past due	Total
Expected loss rate	0.25%	28.11%	45.82%	-	100%
Total book value	$ 207,525	$ 3,494	$ 1,065	$ -	$ -	$ 212,084
Loss allowance	$ 510	$ 982	$ 488	$ -	$ -	1,980

viii. The Company applying the simplified approach to provide loss allowance for accounts receivable and accounts receivable due from related parties are as follows:

	2025
	Receivables from non-related parties	Receivables from related parties	Total
At January 1	$ 1,980	$ 16	$ 1,996
Provision for impairment (Reversal of impairment loss)	4,482	( 16)	4,466
At December 31	$ 6,462	$ -	$ 6,462
	2024
	Receivables from non-related parties	Receivables from related parties	Total
At January 1	$ 1,556	$ 34	$ 1,590
Provision for impairment (Reversal of impairment loss)	424	( 18)	406
At December 31	$ 1,980	$ 16	$ 1,996

(d) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times.

ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Company treasury. Company treasury invests surplus cash in interest bearing current accounts, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

iii. The Company has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate:
Expiring within one year	$ 1,916,930	$ 2,178,926

iv. The Company analyses non-derivative financial liabilities based on the remaining period at the balance sheet date to the contractual maturity date, and derivative financial liabilities based on the fair value on the balance sheet.

Except for accounts payable, other payables (include related parties) and forward foreign exchange contracts whose contractual undiscounted cash flows are approximate to the carrying amount and which mature within a year, the contractual undiscounted cash flows of financial liabilities are as follows:

December 31, 2025

Non-derivative financial liabilities	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years
Short-term loans	$ 45,833	$ -	$ -	$ -
Lease liabilities	28,987	11,320	22,465	-
December 31, 2024
Non-derivative financial liabilities	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years
Short-term loans	$ 39,321	$ -	$ -	$ -
Lease liabilities	18,327	13,911	8,364	-

v. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

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

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company's investment in forward exchange contract is included in Level 2.

Level 3: Unobservable inputs for the asset or liability.

B. The carrying amounts of financial instruments not measured at fair value including cash and cash equivalents, notes receivable, accounts receivable, other receivables (including related parties),

guarantee deposits paid, short-term borrowings, accounts payable, other payables (including related parties) are approximate to their fair values.

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

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Forward exchange contracts (Note)	$ -	($ 2,656)	$ -	($ 2,656)
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Forward exchange contracts (Note)	$ -	$ 1,451	$ -	$ 1,451

Note: The observable valuation data of forward foreign exchange contracts was provided by financial institutions as of the balance sheet date.

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

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 4.

(3) Information on investments in Mainland China

Basic information: Please refer to table 5.

14. SEGMENT INFORMATION

Not applicable.

WIN WIN PRECISION TECHNOLOGY CO., LTD.

Holding of marketable securities at the end of period (Excluding investments in subsidiaries, associates, and joint ventures)

December 31, 2025

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 1

Holding company	Marketable securities	Relationship with the securities issuer	At Period-End
			Account Title	Number of shares	Balance	Ownership (%)	Fair Value	Footnote
WIN WIN Precision Technology Nanjing Co., Ltd.	Shares of unlisted companies
Hefzi Chenling Technology Co.,Ltd	None	Financial assets at fair value through other comprehensive income	NA	$ 4,315	40%	$ 4,315

Table 1, page 1

WIN WIN PRECISION TECHNOLOGY CO., LTD.
Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more
Year ended December 31, 2025

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

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms		Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
The Company	WINAICO Deutschland GmbH	The Company's subsidiary	Sales	($ 632,608)	(28%)	Note	Note	Note	$ 70,290	14%
The Company	WINAICO Australia Pty Ltd.	The Company's subsidiary	Sales	( 129,699)	(6%)	Note	Note	Note	94,798	19%

Note: Transaction terms to related party transaction are approximately the same as the transaction terms to third party transactions.

Table 2,page 1

WIN WIN PRECISION TECHNOLOGY CO., LTD.
Significant inter-company transactions during the reporting period
Year ended December 31, 2025

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	The Company	WINAICO Deutschland GmbH	1	Sales revenues	$ 632,608	Note 5	26.39%
0	n	n	1	Accounts receivable	70,290	Note 5	3.08%
0	n	WINAICO Australia PTY LTD.	1	Sales revenues	129,699	Note 6	5.41%
0	n	n	1	Accounts receivable	94,798	Note 6	4.15%
0	n	Win Win Precision Technology Nanjing Co, Ltd.	1	Service expense	5,532	Note 7	0.23%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on

Note 4: Disclosing only the amount of $5,000 of related party transactions.

Note 5: No similar transaction can be compared, selling price should be based on the agreement term. Collection is due in 60 days.

Note 6: No similar transaction can be compared, selling price should be based on the agreement term. Collection is due in 150 days.

Note 7: No similar transaction can be compared, selling price should be based on the agreement term. Collection is due in 30 days.

Table 3, page 1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

Information on investees

Year ended December 31, 2025

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as of December 31,2025	Balance as of December 31,2024	Number of shares	Ownership (%)	Book value
The Company	Winaico B.V.	Netherlands	Investment holdings	$ -	$ 632,053	-	-	$ -	($ 25,361)	($ 25,361)	Note 1
n	WINAICO Delaware Co., Ltd.	USA	Sales of solar photovoltaic modules	39,457	39,457	300,000	100%	20,834	9,674	9,674
n	WINAICO Australia PTY Ltd.	Australia	Sales of solar photovoltaic modules	33,869	33,869	1,600,000	100%	1,668 (	4,011) (	4,011)
n	WINAICO Japan K.K.	Japan	Sales of solar photovoltaic modules	10,994	10,994	4,000	100%	5 (	286) (	286)
n	WINAICO Solar Projekt 1 GmbH	Germany	Operation of solar power plant	46,927	3,841	2,240,000	100%	473 (	79) (	76)	Note 2
n	Win Win Green Energy Co.,Ltd.	Taiwan	Service of energy management consulting	1,000	1,000	100,000	100%	1,041 (	48) (	48)
n	WINAICO Deutschland GmbH	Germany	Sales of solar photovoltaic modules	203,203	-	1	100%	( 3,028) (	35,849) (	10,501)	Note 2
WINAICO B.V.	WINAICO Solar Projekt 1 GmbH	Germany	Operation of solar power plant	-	43,086	-	-	- (	79)	-	Note 2
n	WINAICO Deutschland GmbH	Germany	Sales of solar photovoltaic modules	-	203,203	-	-	- (	35,849)	-	Note 2

Note 1: Due to the cessation of business of WINAICO B.V., the company cancelled its registration in the fourth quarter of 2025 and collected the remaining investment.
Note 2: For the group's operational considerations, the company simplified the investment structure in the second quarter of 2025.

WIN WIN PRECISION TECHNOLOGY CO., LTD.

Information on investments in Mainland China

Year ended December 31, 2025

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

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Remitted to Mainland China	Remitted back to Taiwan	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)(%)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 2)	Book value of investments in Mainland China as of December 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31,2025	Footnote
Win Win Precision Technology Nanjing Co, Ltd.	Service provision and investment	$ 9,060	1	$ 9,060	$ -	$ -	$ 9,060	$ 5,074	100%	$ 7,448	$ 22,437	$ -
Hefei Chenling Technology Co., Ltd.	Sales of consumable materials of semiconductor equipment	43,888	3	-	-	-	-	11,598	40%	-	-	-	Note 3
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs	Ceiling on investments in Mainland China imposed by the Investment Commission
---	---	---	---
The Company	$ 9,060	$ 9,060	$ 997,695

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others

Note 2: The investment income (loss) recognised for the current year was based on the financial statements that are audited by parent company's independent auditor.

Note 3: The investee in Mainland China was reinvested through the consolidated subsidiary, WIN WIN Precision Technology Nanjing Co., Ltd. As the Company lost its control over the investee company, the Company reclassified the investment into "Financial assets at fair value through other comprehensive income" measured at fair value, please refer to Table 1.

Table 5,page 1

Statement 1, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 1

Items	Summary				Amount
Cash on hand					$ 200
Cash on hand—EUR	EUR	12	thousand · Exchange rate	36.90	440
Cash on hand—USD	USD	11	thousand · Exchange rate	31.43	350
Cash on hand—SGD	SGD	9	thousand · Exchange rate	24.45	213
Cash on hand—Others(Note)					412
Demand deposit					440,250
Demand deposit—EUR	EUR	2,340	thousand · Exchange rate	36.90	86,340
Demand deposit—CNY	CNY	2,186	thousand · Exchange rate	4.50	9,829
Demand deposit—USD	USD	3,095	thousand · Exchange rate	31.43	97,262
Demand deposit—AUD	AUD	386	thousand · Exchange rate	21.01	8,117
Demand deposit—JPY	JPY	31,318	thousand · Exchange rate	0.20	6,289
Time deposit					150,000
					$ 799,702

Note: Foreign currency amounts that convert to less than $200 will not be listed separately.

Statement 2, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 2

Client name	Amount	Note
Accounts receivable - non-related parties
Client A	$ 128,340
Client B	49,793
Client C	32,859
Client D	29,153
Client E	25,885
Client F	17,765
Others	54,249	None of the balances of each remaining client exceed 5% of this account balance
	338,044
Less: Allowance for loss	( 6,462)
	331,582
Accounts receivable - related parties
WINAICO Ausrralia PTY LTD.	$ 94,798
WINAICO Deutschland GmbH	70,290
	165,088
	$ 496,670

Statement 3, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 3

Items	Amount		Note
	Cost	Fair value
Raw materials	$ 121,089	$ 111,683	Measured by net realizable value
Work in process	22,569	42,669	Measured by net realizable value
Finished goods	321,767	466,898	Measured by net realizable value
Products	151,538	140,751	Measured by net realizable value
Goods in transit	69,856	69,856	Measured by net realizable value
	686,819	$ 831,857
Less: Allowance for valuation loss	( 105,720)
	$ 581,099

WIN WIN PRECISION TECHNOLOGY CO., LTD.
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Statement 4

Name	Beginning balance		Addition		Decrease		Cumulative translation adjustment		Ending balance			Market Value or Net Assets Value
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Percentage of Ownership	Amount	Amount	Unit price (in dollars)	Total
WINAICO B.V.	180	$ 30,321	-	$ -	( 180)	($ 74,282)	$ 43,961	-	-	$ -	$ -	$ -	None
WINAICO Deutschland GmbH	-	-	1	18,125	-	( 17,001)	( 4,152)	1	100%	( 3,028)	( 3,027,955)	( 3,028)	"
WINAICO Delaware Co., Ltd.	300,000	12,133	-	9,674	-	-	( 973)	300,000	100%	20,834	69	20,834	"
WINAICO Australia PTY LTD.	1,600,000	1,173	-	302	-	-	193	1,600,000	100%	1,668	1	1,668	"
WINAICO Japan K.K.	4,000	297	-	-	-	( 286)	( 6)	4,000	100%	5	1	5	"
Win Win Precision Technology Nanjing Co, Ltd.	-	14,847	-	7,448	-	-	142	-	100%	22,437	-	22,437	"
WINAICO Solar Projekt 1 GmbH	1,120,000	256	1,120,000	363	-	( 310)	164	2,240,000	100%	473	-	473	"
Win Win Green Energy Co., Ltd.	100,000	1,089	-	-	-	( 48)	-	100,000	100%	1,041	10	1,041	"
Subtotal		$ 60,116		$ 35,912		($ 91,927)	$ 39,329			$ 43,430		$ 43,430
Add: Credit balance reclassified to Other non-current liabilities										3,028
Total		$ 60,116								$ 46,458

Statement 4, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.
STATEMENT OF CHANGES IN PROPERTY PLANT AND EQUIPMENT
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Statement 5

Items	Beginning balance	Addition	Decrease	Reclassification	Ending balance	Pledge to other as collateral
Cost
Machinery and equipment	$ 127,623	$ 25,596	($ 37)	$ 1,872	$ 155,054	None
Office equipment	17,550	4,268	( 3,722)	-	18,096	〃
Leasehold improvements	36,336	4,270	( 1,520)	-	39,086	〃
Other equipment	7,497	2,872	( 151)	-	10,218	〃
Subtotal	189,006	$ 37,006	($ 5,430)	$ 1,872	222,454
Less: Accumulated depreciation
Machinery and equipment	($ 95,008)	($ 13,946)	$ 37	$ -	($ 108,917)	None
Office equipment	( 13,857)	( 2,385)	3,722	-	( 12,520)	〃
Leasehold improvements	( 31,738)	( 2,506)	1,520	-	( 32,724)	〃
Other equipment	( 4,938)	( 1,311)	151	-	( 6,098)	〃
Subtotal	( 145,541)	($ 20,148)	$ 5,430	$ -	( 160,259)
Carrying amount	$ 43,465				$ 62,195

Statement 5, Page1

Statement 6, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF SHORT TERM BORROWINGS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 6
| Type of borrowings | Direction | Ending balance | Contract period | Range of interest rate | Credit line | Pledge to other as collateral |
| --- | --- | --- | --- | --- | --- | --- |
| Material purchase | Taiwan Cooperative Bank (Zhubei Branch.) | $ 4,719 | 2025/12 ~ 2026/12 | 2.76% | $ 100,000 | None |
| " | Chinatrust Commercial Bank Co., Ltd. (Hsinchu Branch) | 40,782 | 2025/04 ~ 2026/04 | 2.92 ~ 2.97% | 150,000 | " |
| | | $ 45,501 | | | $ 250,000 | |

Statement 7, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 7

Supplier name	Amount	Note
Accounts payable - non-related parties
Supplier A	$ 43,465
Supplier B	37,708
Supplier C	13,074
Supplier D	11,639
Others	70,009	None of the balances of each remaining supplier exceed 5% of this account balance
	$ 175,895

Statement 8, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 8
| Items | Quantity | | Amount | Note |
| --- | --- | --- | --- | --- |
| Sales revenue | | | | |
| Solar photovoltaic modules | 224,525,255 | Watt | $ 953,110 | |
| Semiconductor parts | 533,185 | PCS | 1,090,570 | |
| Construction revenue | 13 | case | 34,334 | |
| Service revenue | | | 206,475 | |
| Sub-total | | | 2,284,489 | |
| Less: Sales return and discount | | | ( 703) | |
| | | | $ 2,283,786 | |

Statement 9, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 9

Items	Subtotal	Total
Beginning inventory& goods in transit		$ 247,026
Add: Purchased for the year		752,136
Less: Transferred to expenses		( 302)
Ending inventory& goods in transit		( 221,394)
Cost of purchases		777,466
Beginning raw materials	$ 106,535
Add: Raw materials purchased for the year	239,868
Less: Selling raw materials	( 4,736)
Transferred to expenses	( 26,218)
Ending raw materials	( 121,089)
Raw materials used for the year		194,360
Direct labor		45,933
Manufacturing overhead		158,335
Manufacturing cost		398,628
Add: Beginning work in process		17,587
Purchased for the year		2,726
Less: Ending work in process		( 22,569)
Cost of finished goods		396,372
Add: Beginning finished goods		282,759
Purchased for the year		257,596
Less: Transferred to expenses		( 9,464)
Transfer to construction cost		( 6,312)
Ending finished goods		( 321,767)
Cost of production		1,376,650
Cost of selling raw materials		4,736
Gains on reversal of decline in market value		( 39,671)
Cost of production-other		508
Revenue from sale of scraps		( 4,391)
Warranty cost		14,505
Construction cost		26,924
Services cost		150,655
Operating costs		$ 1,529,916

Statement 10, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 10

Items	Selling expenses	Administrative expenses	Research and development	Total amount
Salary expenditure(including: directors' remuneration)	$ 92,890	$ 97,839	$ 22,521	$ 213,250
Transportation and charges for exports	87,470	10	115	87,595
Rent expense	18,138	2,166	126	20,430
Entertainment expense	21,885	24,462	55	46,402
Depreciation	3,840	18,458	2,493	24,791
Services expense	1,836	14,441	7,956	24,233
Inspection expense	-	1,300	8,036	9,336
Consumables	4,186	1,134	6,869	12,189
Other expenses(Note)	42,456	42,893	12,734	98,083
	$ 272,701	$ 202,703	$ 60,905	$ 536,309

Note : None of the balance of each individual item exceed 5% of the account balance.

WIN WIN PRECISION TECHNOLOGY CO., LTD.
SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTISATION EXPENSES BY FUNCTION
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Statement 11

| Function
Nature | Year ended December 31,2025 | | | Year ended December 31,2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Classified as Operating Costs | Classified as Operating Expenses | Total | Classified as Operating Costs | Classified as Operating Expenses | Total |
| Employee Benefit Expense | | | | | | |
| Wages and salaries | 175,204 | 208,585 | 383,789 | 140,835 | 195,342 | 336,177 |
| Labor and health insurance fees | 19,565 | 15,193 | 34,758 | 15,471 | 15,213 | 30,684 |
| Pension costs | 7,498 | 7,321 | 14,819 | 6,034 | 7,252 | 13,286 |
| Directors' remuneration | - | 1,956 | 1,956 | - | 1,000 | 1,000 |
| Share-based payment | 148 | 2,709 | 2,857 | 731 | 11,466 | 12,197 |
| Other personnel expenses | 12,007 | 7,599 | 19,606 | 3,897 | 7,655 | 11,552 |
| Depreciation charges | 23,833 | 24,791 | 48,624 | 31,761 | 32,569 | 64,330 |
| Amortization charges | 54 | 2,313 | 2,367 | 888 | 1,811 | 2,699 |

Note:
A. Years ended December 31, 2025 and 2024, the Company had 462 and 416 employees, including 6 and 6 non-employee directors, respectively.
B. (a) Average employee benefit expense for the years ended December 31, 2025 and 2024 were $1,000 and $999, respectively.
(b) Average wages and salaries for the years ended December 31, 2025 and 2024 were $841 and $820, respectively.
(c) Adjustments of average employee salaries were 2.56%.

Statement 11, Page1

WIN WIN PRECISION TECHNOLOGY CO., LTD.
SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTISATION EXPENSES BY FUNCTION
(Cont.)
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Statement 11

Explanation:

A. The number of employees in the note to this statement shall be calculated based on the same basis as the employee benefit expense.

B. In accordance with IAS 19, an employee may render services on a full-time, part-time, permanent, casual or temporary basis, and employees include directors and other management personnel. Thus, "employees" in this statement include directors, managers, general employees and contracted employees, etc. but exclude supervisors, dispatched workers and workers under service or outsourcing contracts.

C. "Directors' remuneration" include salaries, severance and pension payments, bonuses and professional practice fees that are received by all directors, but excludes salaries, labour and health insurance fees, pension payments and other benefit expenses that are received by directors as employees. as employees.

D. The Company's compensation policy (including directors, independent directors, managers and employees) is as follows:

(a) The Company has established a Compensation Committee responsible for setting and periodically reviewing the performance evaluation standards, short-term and long-term performance goals, and the policies, systems, standards, and structures of remuneration for directors and managers. Based on the results of the performance evaluation standards, and with reference to the typical levels of remuneration in the same industry, as well as the characteristics of the industry and the nature of the business, the remuneration is determined. Additionally, if the Company realizes a profit for the year, up to 2% of the profit may be allocated as directors' remuneration in accordance with the Company's Articles of Incorporation.

(b) The remuneration for the Company's employees is determined based on their functions, responsibilities, and performance, taking into consideration their educational background, professional skills, and prevailing employment market salary trends and price indices. Additionally, if the Company realizes a profit for the year, 3% to 10% of the profit shall be allocated as employee compensation in accordance with the Company's Articles of Incorporation, no less than 20% shall be appropriated as remuneration for employees, and the remuneration for directors shall not exceed 2%.

Statement 11, Page2

AI assistant

WIN WIN — Audit Report / Information 2025

52446_rns_2026-05-06_29e6ba50-5719-49f3-acb5-e18375c32490.pdf

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Recognition of revenue from major customers of solar photovoltaic modules

Description

How our audit addressed the matter

Valuation of inventories

Description

How our audit addressed the matter

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

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

WIN WIN PRECISION TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Foreign currency translation

A. Foreign currency transactions and balance

(18) Retained earnings

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant related party transactions

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS

12. OTHERS

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

13. SUPPLEMENTARY DISCLOSURES

14. SEGMENT INFORMATION

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF SHORT TERM BORROWINGS

DECEMBER 31, 2025

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

WIN WIN PRECISION TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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WIN WIN Audit Report / Information 2025