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WIN WIN — Interim / Quarterly Report 2025
May 6, 2026
52446_rns_2026-05-06_1b4d3380-63a3-4549-a0db-b684fb52456d.pdf
Interim / Quarterly Report
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WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REVIEW REPORT
SEPTEMBER 30, 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' REVIEW REPORT TRANSLATED FROM CHINESE
PWCR25000196
To Win Win Precision Technology Co., Ltd.
Introduction
We have reviewed the accompanying consolidated balance sheets of Win Win Precision Technology Co., Ltd. and its subsidiaries (the "Group") as at September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine months then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.
Scope of Review
Except as explained in the following paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410 "Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Basis for Qualified Conclusion
As explained in Notes 4(3) and 6(6), the financial statements of insignificant consolidated subsidiaries and investments accounted for using equity method (also shown under other non-current liabilities) were not reviewed by independent auditors. Total assets of these subsidiaries (including investments accounted for using equity method) amounted to NT$128,701 thousand and NT$148,467 thousand, constituting 6% and 7% of the consolidated total assets as at September
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青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
www.pwc.tw
pwc
資訊
30, 2025 and 2024, respectively, total liabilities (including other non-current liabilities) amounted to NT$20,023 thousand and NT$19,408 thousand, constituting 3% and 4% of the consolidated total liabilities as at September 30, 2025 and 2024, respectively, and total comprehensive loss amounted to (NT$5,640) thousand, (NT$7,168) thousand, (NT$13,440) thousand and (NT$17,468) thousand, constituting (10.9%), 66.9%, (13.7%) and 14.8% of the consolidated total comprehensive income (loss) for the three months and nine months then ended, respectively.
Qualified Conclusion
Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of consolidated subsidiaries and investments accounted for using equity method been reviewed by independent auditors as described in the Basis for qualified conclusion section above, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at September 30, 2025 and 2024, and of its consolidated financial performance for the three months and nine months then end and its consolidated cash flows for the nine months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission.
Lin, Se-Kai
Wen, Ya-Fang
For and on behalf of PricewaterhouseCoopers, Taiwan
November 11, 2025
The accompanying consolidated 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 consolidated 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
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2025, DECEMBER 31, 2024 AND SEPTEMBER 30, 2024
(Expressed in thousands of New Taiwan dollars)
| Assets | Notes | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| AMOUNT | % | AMOUNT | % | AMOUNT | % | |||
| Current assets | ||||||||
| 1100 | Cash and cash equivalents | 6(1) | $ 923,110 | 42 | $ 856,943 | 43 | $ 773,756 | 38 |
| 1110 | Financial assets at fair value through profit or loss - current | 6(2) | - | - | 1,451 | - | - | - |
| 1140 | Current contract-assets | 6(19) | 11,315 | - | - | - | - | - |
| 1150 | Notes receivable, net | 6(3) | 5,620 | - | 1,867 | - | 13,232 | 1 |
| 1170 | Accounts receivable, net | 6(3) | 301,426 | 14 | 263,543 | 13 | 288,677 | 14 |
| 1180 | Accounts receivable - related parties, net | 7(2) | 35,753 | 2 | 6,159 | - | 3,710 | - |
| 1200 | Other receivables | 1,492 | - | 2,695 | - | 3,626 | - | |
| 1210 | Other receivables due from related parties | 7(2) | 445 | - | 82 | - | - | - |
| 1220 | Current income tax assets | 29,278 | 2 | 27,619 | 2 | 29,498 | 1 | |
| 130X | Inventories | 6(4) | 599,223 | 28 | 553,294 | 28 | 614,186 | 31 |
| 1410 | Prepayments | 6(5) | 63,702 | 3 | 69,638 | 4 | 88,685 | 4 |
| 1479 | Other current assets - other | 2,892 | - | 1,493 | - | 1,967 | - | |
| 1482 | Current assets recognised from costs to fulfil contracts with customers | 566 | - | 945 | - | 939 | - | |
| 11XX | Total Current Assets | 1,974,822 | 91 | 1,785,729 | 90 | 1,818,276 | 89 | |
| Non-current assets | ||||||||
| 1550 | Investments accounted for using equity method | 6(6) | - | - | - | - | 5,442 | - |
| 1600 | Property, plant and equipment | 6(7) | 52,019 | 2 | 45,032 | 2 | 45,675 | 3 |
| 1755 | Right-of-use assets | 6(8) | 37,627 | 2 | 41,827 | 2 | 43,643 | 3 |
| 1780 | Intangible assets | 6(9) | 7,350 | - | 8,022 | 1 | 5,714 | - |
| 1840 | Deferred income tax assets | 76,116 | 4 | 77,149 | 4 | 86,676 | 4 | |
| 1900 | Other non-current assets | 8 | 24,332 | 1 | 26,543 | 1 | 27,938 | 1 |
| 15XX | Total non-current assets | 197,444 | 9 | 198,573 | 10 | 215,088 | 11 | |
| 1XXX | Total assets | $ 2,172,266 | 100 | $ 1,984,302 | 100 | $ 2,033,364 | 100 |
(Continued)
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2025, DECEMBER 31, 2024 AND SEPTEMBER 30, 2024
(Expressed in thousands of New Taiwan dollars)
| Liabilities and Equity | Notes | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| AMOUNT | % | AMOUNT | % | AMOUNT | % | |||
| Current liabilities | ||||||||
| 2100 | Short-term borrowings | 6(11) | $ 56,259 | 3 | $ 38,942 | 2 | $ 93,216 | 5 |
| 2120 | Financial liabilities at fair value through profit or loss - current | 6(2) | 1,117 | - | - | - | 1,201 | - |
| 2130 | Contract liabilities- current | 6(19) | 28,188 | 1 | 10,401 | - | 23,049 | 1 |
| 2170 | Accounts payable | 177,257 | 8 | 128,684 | 6 | 107,231 | 5 | |
| 2200 | Other payables | 6(12) | 200,868 | 10 | 169,624 | 9 | 200,772 | 10 |
| 2230 | Current income tax liabilities | 28,867 | 1 | 1,522 | - | 1,479 | - | |
| 2250 | Provisions for liabilities-current | 6(15) | 20,660 | 1 | 10,353 | 1 | 12,656 | - |
| 2280 | Current lease liabilities | 24,642 | 1 | 18,297 | 1 | 19,455 | 1 | |
| 2300 | Other current liabilities | 8,092 | - | 13,234 | 1 | 16,020 | 1 | |
| 21XX | Total Current Liabilities | 545,950 | 25 | 391,057 | 20 | 475,079 | 23 | |
| Non-current liabilities | ||||||||
| 2550 | Provisions for liabilities - non-current | 6(15) | 14,951 | 1 | 14,810 | 1 | 18,457 | 1 |
| 2570 | Deferred income tax liabilities | 1,028 | - | 948 | - | 262 | - | |
| 2580 | Non-current lease liabilities | 11,870 | 1 | 20,777 | 1 | 19,761 | 1 | |
| 2670 | Other non-current liabilities | 6(6) | 10,278 | - | 2,374 | - | - | - |
| 25XX | Total non-current liabilities | 38,127 | 2 | 38,909 | 2 | 38,480 | 2 | |
| 2XXX | Total Liabilities | 584,077 | 27 | 429,966 | 22 | 513,559 | 25 | |
| Equity | ||||||||
| Share capital | 6(16) | |||||||
| 3110 | Ordinary shares | 671,675 | 31 | 668,665 | 34 | 665,050 | 33 | |
| 3140 | Advance receipts for share capital | 2,651 | - | 1,575 | - | 6,471 | - | |
| Capital surplus | 6(17) | |||||||
| 3200 | Capital surplus | 566,295 | 26 | 561,084 | 28 | 555,557 | 28 | |
| Retained earnings | 6(18) | |||||||
| 3310 | Legal reserve | 83,627 | 4 | 83,627 | 4 | 83,627 | 4 | |
| 3320 | Special reserve | 34,159 | 2 | 36,633 | 2 | 36,633 | 2 | |
| 3350 | Undistributed retained earnings | 265,152 | 12 | 236,911 | 12 | 204,605 | 10 | |
| Other equity interest | ||||||||
| 3400 | Other equity interest | ( 35,370 ) | ( 2 ) | ( 34,159 ) | ( 2 ) | ( 32,138 ) | ( 2 ) | |
| 3XXX | Total equity | 1,588,189 | 73 | 1,554,336 | 78 | 1,519,805 | 75 | |
| Significant contingent liabilities and unrecognised contract commitments | 9 | |||||||
| 3X2X | Total liabilities and equity | $ 2,172,266 | 100 | $ 1,984,302 | 100 | $ 2,033,364 | 100 |
The accompanying notes are an integral part of these consolidated financial statements.
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except earnings (deficits) per share)
| Items | Notes | Three months ended September 30 | Nine months ended September 30 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||||
| AMOUNT | % | AMOUNT | % | AMOUNT | % | AMOUNT | % | |||
| 4000 | Operating revenue | 6(19) and 7(2) | $ 536,419 | 100 | $ 573,895 | 100 | $ 1,781,227 | 100 | $ 1,813,011 | 100 |
| 5000 | Operating costs | 6(4) | ( 332,041) | ( 62) | ( 393,158) | ( 69) | ( 1,153,274) | ( 65) | ( 1,423,314) | ( 79) |
| 5900 | Gross profit | 204,378 | 38 | 180,737 | 31 | 627,953 | 35 | 389,697 | 21 | |
| 5910 | Unrealized profit from sales | 6(6) | ( 3,537) | ( 1) | ( 388) | - | ( 7,904) | - | ( 1,513) | - |
| 5950 | Net gross profit | 200,841 | 37 | 180,349 | 31 | 620,049 | 35 | 388,184 | 21 | |
| Operating expenses | ||||||||||
| 6100 | Selling expenses | ( 83,107) | ( 15) | ( 89,103) | ( 16) | ( 263,368) | ( 15) | ( 285,467) | ( 16) | |
| 6200 | General and administrative expenses | ( 57,428) | ( 11) | ( 62,424) | ( 11) | ( 178,142) | ( 10) | ( 188,578) | ( 10) | |
| 6300 | Research and development expenses | ( 11,129) | ( 2) | ( 20,226) | ( 4) | ( 37,074) | ( 2) | ( 47,321) | ( 3) | |
| 6450 | Expected credit impairment loss | 12(2) | ||||||||
| ( 1,123) | - | ( 1,084) | - | ( 624) | - | ( 2,089) | - | |||
| 6000 | Total operating expenses | ( 152,787) | ( 28) | ( 172,837) | ( 31) | ( 479,208) | ( 27) | ( 523,455) | ( 29) | |
| 6900 | Operating profit (loss) | 48,054 | 9 | 7,512 | - | 140,841 | 8 | ( 135,271) | ( 8) | |
| Non-operating income and expenses | ||||||||||
| 7100 | Interest income | 6(20) | 1,859 | - | 2,044 | 1 | 7,217 | - | 4,786 | - |
| 7010 | Other income | 6(21) | 1,009 | - | 974 | - | 16,436 | 1 | 3,897 | - |
| 7020 | Other gains and losses | 6(22) | 10,529 | 2 | ( 23,322) | ( 4) | ( 33,406) | ( 2) | ( 21,610) | ( 1) |
| 7050 | Finance costs | 6(23) | ( 759) | - | ( 1,539) | - | ( 2,426) | - | ( 4,459) | - |
| 7060 | Share of loss of associates and joint ventures accounted for using equity method | |||||||||
| - | - | ( 554) | - | - | - | ( 3,003) | - | |||
| 7000 | Total non-operating income and expenses | 12,638 | 2 | ( 22,397) | ( 3) | ( 12,179) | ( 1) | ( 20,389) | ( 1) | |
| 7900 | Profit (loss) before income tax | 60,692 | 11 | ( 14,885) | ( 3) | 128,662 | 7 | ( 155,660) | ( 9) | |
| 7950 | Income tax (expense) benefit | 6(26) | ( 12,187) | ( 2) | 2,570 | 1 | ( 29,169) | ( 2) | 33,104 | 2 |
| 8200 | Profit (loss) for the period | $ 48,505 | 9 | ($ 12,315) | ( 2) | $ 99,493 | 5 | ($ 122,556) | ( 7) | |
| Other comprehensive income (net) | ||||||||||
| Components of other comprehensive income that will be reclassified to profit or loss | ||||||||||
| 8361 | Financial statements translation differences of foreign operations | $ 3,086 | 1 | $ 1,595 | - | ($ 1,211) | - | $ 4,495 | - | |
| 8500 | Total comprehensive income (loss) for the period | $ 51,591 | 10 | ($ 10,720) | ( 2) | $ 98,282 | 5 | ($ 118,061) | ( 7) | |
| 9750 | Basic earnings (deficits) per share | 6(27) | ||||||||
| $ 0.72 | ($ 0.19) | $ 1.48 | ($ 1.92) | |||||||
| 9850 | Diluted earnings (deficits) per share | 6(27) | ||||||||
| $ 0.71 | ($ 0.19) | $ 1.47 | ($ 1.92) |
The accompanying notes are an integral part of these consolidated financial statements.
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)
| Notes | Share Capital | Additional paid-in capital | 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 | |||||
| Nine months ended September 30, 2024 | |||||||||
| Balance at January 1, 2024 | $ 607,050 | $ - | $ 444,237 | $ 64,197 | $ 38,509 | $ 490,407 | ($ 36,633 ) | $ 1,607,767 | |
| Loss for the period | - | - | - | - | - | ( 122,556 ) | - | ( 122,556 ) | |
| Other comprehensive income for the period | - | - | - | - | - | - | 4,495 | 4,495 | |
| Total comprehensive (loss) income | - | - | - | - | - | ( 122,556 ) | 4,495 | ( 118,061 ) | |
| 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 share options | 6(14) | - | 6,471 | - | - | - | - | - | 6,471 |
| Compensation cost of share-based payment | 6(14) | - | - | 10,770 | - | - | - | - | 10,770 |
| Balance at September 30, 2024 | $ 665,050 | $ 6,471 | $ 555,557 | $ 83,627 | $ 36,633 | $ 204,605 | ($ 32,138 ) | $ 1,519,805 | |
| Nine months ended September 30, 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 period | - | - | - | - | - | 99,493 | - | 99,493 | |
| Other comprehensive loss for the period | - | - | - | - | - | - | ( 1,211 ) | ( 1,211 ) | |
| Total comprehensive income (loss) | - | - | - | - | - | 99,493 | ( 1,211 ) | 98,282 | |
| 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 share options | 6(14) | 3,010 | 1,076 | 2,960 | - | - | - | - | 7,046 |
| Compensation cost of share-based payment | 6(14) | - | - | 2,247 | - | - | - | - | 2,247 |
| Expired dividends not claimed by shareholders | 6(17) | - | - | 2 | - | - | - | - | 2 |
| Exercise of disgorgement | 6(17) | - | - | 2 | - | - | - | - | 2 |
| Balance at September 30, 2025 | $ 671,675 | $ 2,651 | $ 566,295 | $ 83,627 | $ 34,159 | $ 265,152 | ($ 35,370 ) | $ 1,588,189 |
The accompanying notes are an integral part of these consolidated financial statements.
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)
| Notes | Nine months ended September 30 | ||
|---|---|---|---|
| 2025 | 2024 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Profit (loss) before tax | $ 128,662 | ($ 155,660) | |
| Adjustments | |||
| Adjustments to reconcile profit (loss) | |||
| Depreciation expense (including right-of-use assets) | 6(7)(8)(24) | 35,767 | 50,052 |
| Amortisation expense | 6(24) | 1,620 | 2,227 |
| Expected credit impairment loss | 12(2) | 624 | 2,089 |
| Net loss on financial assets and liabilities at fair value through profit or loss | 6(2) | ||
| Interest expense | 6(23) | 705 | 5,582 |
| Interest income | 6(20) | 2,426 | 4,459 |
| Compensation cost of share-based payment | 6(14) | 7,217 | 4,786 |
| Share of loss of associates accounted for using equity method | 6(6) | 2,247 | 10,770 |
| Unrealized profit from sales | 6(6) | 7,904 | 1,513 |
| Gains on disposal of property, plant and equipment | 6(22) | 2 | 77 |
| Impairment loss-property, plant and equipment | 6(10)(22) | - | 21,465 |
| Impairment loss-investments accounted for using the equity method | 6(6)(22) | - | 7,086 |
| Reclassification of overdue advance receipts as income | 6(21) | 10,477 | - |
| Changes in operating assets and liabilities | |||
| Changes in operating assets | |||
| Contract assets-current | ( 11,315 ) | 9,598 | |
| Notes receivable | ( 3,753 ) | 4,997 | |
| Accounts receivable (including related parties) | ( 65,668 ) | 61,446 | |
| Other receivables (including related parties) | 1,498 | 1,894 | |
| Inventories | ( 46,271 ) | 422,447 | |
| Prepayments | 6,443 | 67,103 | |
| Other current assets | ( 1,411 ) | 461 | |
| Assets recognised from costs to fulfil contracts with customers | 379 | 1,326 | |
| Changes in operating liabilities | |||
| Financial liabilities at fair value through profit or loss – current | 1,863 | 6,111 | |
| Contract liabilities - current | 17,948 | 555 | |
| Accounts payable | 44,168 | 44,414 | |
| Other payables | 28,857 | 6,038 | |
| Provisions for liabilities | 10,307 | 662 | |
| Other current liabilities | 5,276 | 4,606 | |
| Cash inflow generated from operations | 150,580 | 340,735 | |
| Interest received | 6,570 | 3,272 | |
| Interest paid | ( 2,259 ) | 3,998 | |
| Income tax paid | ( 782 ) | 116,627 | |
| Net cash flows from operating activities | 154,109 | 223,382 |
(Continued)
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)
| Nine months ended September 30 | ||||
|---|---|---|---|---|
| Notes | 2025 | 2024 | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Acquisition of property, plant and equipment | 6(28) | ($ 23,877) | ($ 4,629) | |
| Acquisition of intangible assets | 6(9) | ( 948) | ( 1,392) | |
| Proceeds from disposal of property, plant and equipment | 2 | 125 | ||
| Increase in guarantee deposit paid | ( 1,922) | ( 2,806) | ||
| Decrease in guarantee deposit paid | 7,128 | 167 | ||
| Net cash flows used in investing activities | ( 19,617) | ( 8,535) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Proceeds from short-term loans | 6(29) | 285,454 | 305,424 | |
| Payments of short-term loans | 6(29) | ( 268,137) | ( 387,320) | |
| Payments of principal portion of lease liabilities | 6(29) | ( 19,144) | ( 25,469) | |
| 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) | 7,046 | 6,471 | |
| Expired dividends not claimed by shareholders | 6(17) | 2 | - | |
| Exercise of disgorgement | 6(17) | 2 | - | |
| Net cash flows used in financing activities | ( 68,503) | ( 88,036) | ||
| Effect of exchange rates changes | 178 | 3,361 | ||
| Net increase in cash and cash equivalents | 66,167 | 130,172 | ||
| Cash and cash equivalents at beginning of period | 856,943 | 643,584 | ||
| Cash and cash equivalents at end of period | $ 923,110 | $ 773,756 |
The accompanying notes are an integral part of these consolidated financial statements.
~10~
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
- 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 Group”) 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 consolidated financial statements were authorized for issuance by the Board of Directors on November 11, 2025.
- 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 Group’s financial condition and financial performance based on the Group’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 Group
New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:
| 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 Group’s financial condition and financial performance based on the Group’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 |
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 Group’s financial condition and financial performance based on the Group’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 MATERIAL ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
(1) Compliance statement
The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.
(2) Basis of preparation
A. Except for financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, these consolidated 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 Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group 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. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
B. Subsidiaries included in the consolidated financial statements:
| Name of investor | Name of subsidiary | Main business activities | Ownership (%) | Remark | ||
|---|---|---|---|---|---|---|
| September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||
| The Company | WINAICO Australia PTY Ltd. | Sales of solar photovoltaic modules | 100 | 100 | 100 | Note 1 |
| n | WINAICO B.V. | Investment holdings | 100 | 100 | 100 | Note 2 |
| n | WINAICO Deutschland GmbH | Sales of solar photovoltaic modules | 100 | - | - | Note 2 |
| n | WINAICO Japan K.K. | Sales of solar photovoltaic modules | 100 | 100 | 100 | Note 1 |
| n | WIN WIN Precision Technology Nanjing Co, Ltd. | Service provision and investment | 100 | 100 | 100 | Note 1 |
| n | WINAICO Solar Projekt 1 GmbH | Operation of solar power plant | 100 | 50 | 50 | Notes 1 and 2 |
| n | WINAICO Delaware Co., Ltd. | Sales of solar photovoltaic modules | 100 | 100 | 100 | Note 1 |
| n | Win Win Green Energy Co., Ltd | Service of energy management consulting | 100 | 100 | 100 | Note 1 |
| WINAICO B.V. | WINAICO Deutschland GmbH | Sales of solar photovoltaic modules | - | 100 | 100 | Note 2 |
| n | WINAICO Solar Projekt 1 GmbH | Operation of solar power plant | - | 50 | 50 | Notes 1 and 2 |
Note 1: The financial statements of the entity as of and for the nine months ended September 30, 2025 and 2024 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.
Note 2: 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. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.
(4) Foreign currency translation
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan dollars, which is the Company's functional and the Group's presentation 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 group 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 Group still 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 Group
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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.
(5) 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;
(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.
(6) 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.
(7) 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 Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
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(8) Accounts and notes receivable
A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(9) Impairment of financial assets
For financial assets at amortized cost including accounts receivable or contract assets that have a significant financing component and loan commitments, at each reporting date, the Group 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 Group recognizes the impairment provision for lifetime ECLs.
(10) Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.
(11) Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in 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.
(12) Investments accounted for using the equity method / associates
A. Associates are all entities over which the Group 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.
B. The Group'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 recognised in other comprehensive income. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
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C. 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 Group’s ownership percentage of the associate, the Group recognises the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.
D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’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 Group.
E. When the Group 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.
F. At the balance sheet date, the Group 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.
(13) 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 Group 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
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Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:
| Machinery and equipment | 2 ~ 10 years |
|---|---|
| Transportation equipment | 5 ~ 8 years |
| Office equipment | 3 ~ 5 years |
| Other equipment | 2 ~ 19 years |
| Leasehold assets | 2 ~ 3 years |
(14) 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 Group. 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 Group 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.
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 original direct costs incurred; 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.
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(15) 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 licenses
Separately acquired trademarks and licenses are stated at historical cost. Trademarks and licenses have a finite useful life and are amortized on a straight-line basis over their estimated useful lives of 9 to 20 years.
(16) Impairment of non-financial assets
The Group 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.
(17) 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.
(18) Accounts and notes payable
A. Notes 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.
(19) 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 Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.
(20) Derecognition of financial liabilities
A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.
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(21) Provisions
Provisions (including warranties and decommissioning liabilities) are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.
(22) Employee benefits
A. Short-term employee benefits
Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expenses in that period when the employees render service.
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 paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.
(23) 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.
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(24) Income tax
A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
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 Group 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.
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F. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
G. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.
(25) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.
(26) Dividends
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.
(27) Revenue recognition
A. Sales of goods
(a) The Group 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 Group 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 Group'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 Group 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.
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B. Service revenue
The Group 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 Group 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 Group'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.
(28) Government grants
Government grants are recognised at their fair value only when there is reasonable assurance that the Group 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 Group recognises expenses for the related costs for which the grants are intended to compensate.
(29) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Chief Operating Decision-Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.
- CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY
The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical estimates and assumptions concerning future events. Estimates and assumptions may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such estimates and assumptions 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 Group's accounting policies
None.
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(2) Critical accounting estimates and assumptions
Valuation of inventories
As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technological innovation, the Group 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
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Cash on hand | $ 1,934 | $ 1,054 | $ 701 |
| Checking accounts and demand deposits | 619,593 | 573,244 | 589,847 |
| Time deposits | 301,583 | 282,645 | 183,208 |
| $ 923,110 | $ 856,943 | $ 773,756 |
A. The Group 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 Group has no cash and cash equivalents pledged to others.
(2) Financial assets and liabilities at fair value through profit or loss-Current
| Items | September 30, 2025 | December 31, 2024 | September 30, 2024 |
|---|---|---|---|
| Financial assets mandatorily measured at fair value through profit or loss | |||
| Forward foreign exchange contracts | $ - | $ 1,451 | $ - |
| Financial liabilities held for trading | |||
| Forward foreign exchange contracts | $ 1,117 | $ - | $ 1,201 |
A. The Group recognised net loss of ($2,007), ($2,250), ($705) and ($5,582) on financial assets and liabilities measured at fair value through profit or loss for the three months and nine months ended September 30, 2025 and 2024, respectively.
B. The Group 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 Group are as follows:
| September 30, 2025 | ||
|---|---|---|
| Contract amount (Notional principal) | Contract period | |
| Forward foreign exchange contracts | AUD 1,850 thousand | 2025/05~2026/02 |
| December 31, 2024 | ||
| Contract amount (Notional principal) | Contract period | |
| Forward foreign exchange contracts | AUD 2,160 thousand | 2024/09~2025/05 |
| September 30, 2024 | ||
| Contract amount (Notional principal) | Contract period | |
| Forward foreign exchange contracts | AUD 2,300 thousand | 2024/06~2025/02 |
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
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Notes receivable | $ 5,620 | $ 1,867 | $ 13,232 |
| Accounts receivable | $ 303,588 | $ 265,637 | $ 292,183 |
| Less: Allowance for loss | ( 2,162) | ( 2,094) | ( 3,506) |
| $ 301,426 | $ 263,543 | $ 288,677 |
A. Notes receivables were not past due, and the ageing of accounts receivable is provided in Note 12(2).
The Group 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 September 30, 2025, December 31, 2024 and September 30, 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 $234,313 and loss allowance amounted to $1,807.
C. The Group has no notes and accounts receivable pledged to others.
D. As of September 30, 2025, December 31, 2024 and September 30, 2024, without taking into other credit enhancements, the maximum hedge to credit risk in respect of the amount that best represents the Group's notes and accounts receivable were $307,046, $265,410 and $301,909, respectively.
(4) Inventories
| September 30, 2025 | |||
|---|---|---|---|
| Cost | Allowance for valuation loss | Carrying amount | |
| Raw materials | $ 106,259 | ($ 8,714) | $ 97,545 |
| Work in process | 25,802 | ( 211) | 25,591 |
| Finished goods | 299,168 | ( 85,171) | 213,997 |
| Products | 213,214 | ( 45,916) | 167,298 |
| Inventory in transit | 94,792 | - | 94,792 |
| $ 739,235 | ($ 140,012) | $ 599,223 | |
| December 31, 2024 | |||
| Cost | Allowance for valuation loss | Carrying amount | |
| Raw materials | $ 106,600 | ($ 23,833) | $ 82,767 |
| Work in process | 17,587 | ( 101) | 17,486 |
| Finished goods | 282,759 | ( 115,535) | 167,224 |
| Products | 206,169 | ( 26,549) | 179,620 |
| Inventory in transit | 106,197 | - | 106,197 |
| $ 719,312 | ($ 166,018) | $ 553,294 | |
| September 30, 2024 | |||
| Cost | Allowance for valuation loss | Carrying amount | |
| Raw materials | $ 120,354 | ($ 27,104) | $ 93,250 |
| Work in process | 11,789 | ( 114) | 11,675 |
| Finished goods | 315,625 | ( 99,498) | 216,127 |
| Products | 244,282 | ( 30,254) | 214,028 |
| Inventory in transit | 79,106 | - | 79,106 |
| $ 771,156 | ($ 156,970) | $ 614,186 |
The cost of inventories recognized as expense for the period:
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Cost of goods sold | $ 295,645 | $ 369,452 |
| Gain on reversal of decline in market value | ( 9,655) | ( 6,746) |
| Construction costs | 1,094 | - |
| Loss from disposal of inventory | - | 1,230 |
| Income from sale of scraps | - | ( 2,594) |
| $ 287,084 | $ 361,342 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Cost of goods sold | $ 1,057,203 | $ 1,326,678 |
| (Gain on reversal of) loss on decline in market value | ( 27,353) | 10,410 |
| Construction costs | 6,240 | 1,538 |
| Loss from disposal of inventory | 83 | 2,506 |
| Income from sale of scraps | ( 2,259) | ( 2,644) |
| $ 1,033,914 | $ 1,338,488 |
For the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 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
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Prepayments to suppliers | $ 20,719 | $ 24,993 | $ 17,552 |
| Other prepaid expenses | 19,961 | 11,391 | 14,426 |
| Prepaid sales tax | 19,453 | 30,996 | 45,340 |
| Prepaid inspection fee | 3,569 | 2,258 | 11,367 |
| $ 63,702 | $ 69,638 | $ 88,685 |
(6) Investments accounted for using the equity method
| 2025 | 2024 | |
|---|---|---|
| At January 1 | ($ 2,374) | $ 16,432 |
| Share of loss of investments accounted for using the equity method | - | ( 3,003) |
| Impairment loss - Investments accounted for using the equity method | - | ( 7,086) |
| Unrealized profit from sales | ( 7,904) | ( 1,513) |
| Effect of exchange rate changes | - | 612 |
| ( 10,278) | 5,442 | |
| Add: Transferred to other non-current liabilities | 10,278 | - |
| At September 30 | $ - | $ 5,442 |
A. To expand the semiconductor business in mainland China, the consolidated subsidiary, WIN WIN Precision Technology Nanjing Co., Ltd., invested in Hefei Chenling Technology Co., Ltd. with the local entities in March 2023 and injected RMB 4,000 thousand (approximately $17,555) in April 2023 to acquire 40% of its shares. Its principal place of business is in Mainland China and its net gain (loss) for the three months and nine months ended September 30, 2025 and 2024 was $4,106, ($1,385), $9,268 and ($7,508), respectively. The aforementioned investments accounted for using equity method were measured based on the associate's financial statements which were not reviewed by independent auditors.
B. Due to a significant decline in net cash flow from investee in the third quarter of 2024 and for the year ended December 31, 2024, the Group assessed that there was a decline in the recoverable value and recognised impairment loss in the amount of $7,086 and $16,020, respectively.
(The blank)
(7) Property, plant and equipment
| 2025 | ||||||
|---|---|---|---|---|---|---|
| Machinery and equipment | Transportation equipment | Office equipment | Leasehold improvements | Other equipment | Total | |
| January 1 | ||||||
| Cost | $ 127,623 | $ 580 | $ 17,589 | $ 36,336 | $ 16,870 | $ 198,998 |
| Accumulated depreciation | ( 95,008) | ( 580) | ( 13,895) | ( 31,738) | ( 12,745) | ( 153,966) |
| $ 32,615 | $ - | $ 3,694 | $ 4,598 | $ 4,125 | $ 45,032 | |
| At January 1 | $ 32,615 | $ - | $ 3,694 | $ 4,598 | $ 4,125 | $ 45,032 |
| Additions | 11,840 | 994 | 4,165 | 2,106 | 888 | 19,993 |
| Reclassifications (Cost) | 1,872 | - | - | - | - | 1,872 |
| Disposals (Cost) | ( 37) | ( 584) | ( 3,722) | ( 1,520) | ( 151) | ( 6,014) |
| Disposals (Accumulated depreciation) | 37 | 584 | 3,722 | 1,520 | 151 | 6,014 |
| Depreciation charge | ( 10,102) | ( 42) | ( 1,746) | ( 1,853) | ( 1,242) | ( 14,985) |
| Net exchange differences | - | 41 | - | - | 66 | 107 |
| At September 30 | $ 36,225 | $ 993 | $ 6,113 | $ 4,851 | $ 3,837 | $ 52,019 |
| September 30 | ||||||
| Cost | $ 141,298 | $ 1,036 | $ 18,029 | $ 36,922 | $ 18,056 | $ 215,341 |
| Accumulated depreciation | ( 105,073) | ( 43) | ( 11,916) | ( 32,071) | ( 14,219) | ( 163,322) |
| $ 36,225 | $ 993 | $ 6,113 | $ 4,851 | $ 3,837 | $ 52,019 |
| 2024 | ||||||
|---|---|---|---|---|---|---|
| Machinery and equipment | Transportation equipment | Office equipment | Leasehold improvements | Other equipment | Total | |
| January 1 | ||||||
| Cost | $248,924 | $810 | $17,208 | $66,221 | $18,500 | $351,663 |
| Accumulated depreciation and impairment | (179,508) | (810) | (13,136) | (63,676) | (13,609) | (270,739) |
| $69,416 | $- | $4,072 | $2,545 | $4,891 | $80,924 | |
| At January 1 | $69,416 | $- | $4,072 | $2,545 | $4,891 | $80,924 |
| Additions | 1,754 | - | 918 | 601 | 841 | 4,114 |
| Reclassifications (Cost) | 947 | - | - | - | - | 947 |
| Disposals (Cost) | (1,098) | (232) | (937) | (597) | - | (2,864) |
| Disposals(Accumulated depreciation) | 1,050 | 232 | 937 | 597 | - | 2,816 |
| Depreciation charge | (14,696) | - | (1,279) | (1,717) | (1,171) | (18,863) |
| Impairment loss | (21,465) | - | - | - | - | (21,465) |
| Net exchange differences | - | - | - | - | 66 | 66 |
| At September 30 | $35,908 | $- | $3,711 | $1,429 | $4,627 | $45,675 |
| September 30 | ||||||
| Cost | $250,527 | $601 | $17,190 | $66,225 | $19,714 | $354,257 |
| Accumulated depreciation and impairment | (214,619) | (601) | (13,479) | (64,796) | (15,087) | (308,582) |
| $35,908 | $- | $3,711 | $1,429 | $4,627 | $45,675 | |
| A. For the impairment of property, plant and equipment, please refer to Note 6(10). | ||||||
| B. The Group has no property, plant and equipment pledged to others. |
(8) Lease arrangements—lessee
A. The Group 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 Group 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 Group are as follows:
| 2025 | ||||
|---|---|---|---|---|
| Buildings and structures | Transportation equipment | Office equipment | Total | |
| At January 1 | $ 25,780 | $ 15,296 | $ 751 | $ 41,827 |
| Additions | 16,017 | 565 | - | 16,582 |
| Depreciation charge | ( 15,848) | ( 4,183) | ( 751) | ( 20,782) |
| At September 30 | $ 25,949 | $ 11,678 | $ - | $ 37,627 |
| 2024 | ||||
| Buildings and structures | Transportation equipment | Office equipment | Total | |
| At January 1 | $ 50,955 | $ 6,713 | $ 1,752 | $ 59,420 |
| Additions | 2,917 | 12,495 | - | 15,412 |
| Depreciation charge | ( 26,751) | ( 3,687) | ( 751) | ( 31,189) |
| At September 30 | $ 27,121 | $ 15,521 | $ 1,001 | $ 43,643 |
D. Information on profit or loss in relation to lease contracts is as follows:
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Items affecting profit or loss | ||
| Interest expense on lease liabilities | $ 286 | $ 217 |
| Expense on short-term lease contracts | 6,839 | 15,716 |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Items affecting profit or loss | ||
| Interest expense on lease liabilities | $ 980 | $ 694 |
| Expense on short-term lease contracts | 24,457 | 34,379 |
E. For the nine months ended September 30, 2025 and 2024, the Group's total cash outflow for leases were $44,581 and $60,542, respectively.
~31~
(9) Intangible assets
| 2025 | ||||
|---|---|---|---|---|
| Computer Software | Trademarks | Patent | Total | |
| January 1 | ||||
| Cost | $ 15,263 | $ 2,330 | $ 1,124 | $ 18,717 |
| Accumulated amortization | ( 8,838) | ( 1,380) | ( 477) | ( 10,695) |
| $ 6,425 | $ 950 | $ 647 | $ 8,022 | |
| At January 1 | $ 6,425 | $ 950 | $ 647 | $ 8,022 |
| Additional-acquired separately | 902 | - | 46 | 948 |
| Disposals (Cost) | ( 5,954) | - | - | ( 5,954) |
| Disposals (Accumulated amortization) | 5,954 | - | - | 5,954 |
| Amortization charge | ( 1,437) | ( 117) | ( 66) | ( 1,620) |
| At September 30 | $ 5,890 | $ 833 | $ 627 | $ 7,350 |
| September 30 | ||||
| Cost | $ 10,268 | $ 2,330 | $ 1,170 | $ 13,768 |
| Accumulated amortization | ( 4,378) | ( 1,497) | ( 543) | ( 6,418) |
| $ 5,890 | $ 833 | $ 627 | $ 7,350 | |
| 2024 | ||||
| Computer Software | Trademarks | Patent | Total | |
| January 1 | ||||
| Cost | $ 12,074 | $ 2,620 | $ 1,134 | $ 15,828 |
| Accumulated amortization | ( 7,027) | ( 1,513) | ( 740) | ( 9,280) |
| $ 5,047 | $ 1,107 | $ 394 | $ 6,548 | |
| At January 1 | $ 5,047 | $ 1,107 | $ 394 | $ 6,548 |
| Additional-acquired separately | 1,119 | - | 273 | 1,392 |
| Disposals (Cost) | ( 671) | ( 290) | ( 329) | ( 1,290) |
| Disposals (Accumulated amortization) | 671 | 290 | 329 | 1,290 |
| Amortization charge | ( 2,064) | ( 117) | ( 46) | ( 2,227) |
| Net exchange differences | 1 | - | - | 1 |
| At September 30 | $ 4,103 | $ 990 | $ 621 | $ 5,714 |
| September 30 | ||||
| Cost | $ 12,572 | $ 2,330 | $ 1,078 | $ 15,980 |
| Accumulated amortization | ( 8,469) | ( 1,340) | ( 457) | ( 10,266) |
| $ 4,103 | $ 990 | $ 621 | $ 5,714 |
A. Details of amortization on intangible assets are as follows:
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Operating costs | $ 19 | $ 151 |
| Selling expenses | 39 | 39 |
| Administrative expenses | 459 | 344 |
| Research and development expenses | 45 | 95 |
| $ 562 | $ 629 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Operating costs | $ 19 | $ 837 |
| Selling expenses | 118 | 117 |
| Administrative expenses | 1,371 | 1,002 |
| Research and development expenses | 112 | 271 |
| $ 1,620 | $ 2,227 |
B. The Group has no intangible assets pledged to others.
(10) Impairment of non-financial assets (For the nine months ended September 30, 2025: Nil)
A. The Group recognised impairment loss for the nine months ended September 30, 2024. Details are as follows:
| Three months ended September 30, 2024 | Nine months ended September 30, 2024 | |
|---|---|---|
| Impairment loss-machinery and equipment | $ 10,971 | $ 21,465 |
B. In response to the rapid technological innovations and fluctuation in market price of the solar module, the Group adjusted its production strategies in solar energy. For certain equipment which did not meet the operating plan, the Group would assess the recoverable amounts. Additionally, the Group recognised the differences between the recoverable amounts and the book value in impairment loss for the three months and nine months ended September 30, 2024 in the amount of $10,971 and $21,465, respectively.
(11) Short-term borrowings
| Type of borrowings | September 30, 2025 | December 31, 2024 | September 30, 2024 |
|---|---|---|---|
| Bank borrowings | |||
| Unsecured borrowings | $ 56,259 | $ 38,942 | $ 93,216 |
| Interest rate range | 2.52%~3.12% | 3.65%~4.29% | 3.74%~4.77% |
(12) Other payables
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Salary and year-end bonus payable | $ 115,856 | $ 106,342 | $ 114,371 |
| Business tax payable | 11,575 | - | 22,962 |
| Customs and miscellaneous payable | 10,832 | 15,564 | 19,469 |
| Labor and National Health insurance payable | 8,835 | 7,612 | 7,201 |
| Freight payable | 6,961 | 1,968 | 3,268 |
| Service payable | 5,464 | 5,978 | 4,001 |
| Pension expense payable | 4,169 | 3,544 | 3,540 |
| Equipment payable | 4,036 | 2,378 | 989 |
| Rents payable | 3,735 | 4,061 | 7,968 |
| Utilities payable | 3,342 | 1,552 | 1,832 |
| Insurance payable | 1,814 | 1,441 | 1,470 |
| Others | 24,249 | 19,184 | 13,701 |
| $ 200,868 | $ 169,624 | $ 200,772 |
(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. Win Win Precision Technology Nanjing Co, Ltd. has a defined contribution plan according to the pension insurance system stipulated by the government of the People's Republic of China in the three months and nine months ended September 30, 2025 and 2024 with a fixed rate of 16% of the total salary of local employees every month, and the pension of each employee is managed and arranged by the local government. Other than monthly contributions, the Group has no further obligation.
C. Accounting for pension plans of foreign subsidiaries, WINAICO Deutschland GmbH, WINAICO Delaware Co., Ltd., and WINAICO Australia PTY LTD., comply with the local pension contribution laws and regulations. Other consolidated entities do not have any employees. Therefore, they do not have employee pension plans.
D. The pension costs under the defined contribution pension plans of the Group for the three months and nine months ended September 30, 2025 and 2024 were $4,716, $4,274, $13,458 and $12,467, 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 nine months ended September 30, 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:
| Nine months ended September 30, 2025 | ||
|---|---|---|
| No. of options (in thousand) | Weighted-average exercise price (in dollars) | |
| Options outstanding at January 1 | 1,455 | $ 17.9 |
| Options exercised | ( 409) | 17.2 |
| Options forfeited | ( 38) | |
| Options expired | ( 33) | |
| Options outstanding at September 30 | 975 | 17.2 |
| Options exercisable at September 30 | 597 | |
| Nine months ended September 30, 2024 | ||
| No. of options (in thousand) | Weighted-average exercise price (in dollars) | |
| Options outstanding at January 1 | 2,160 | $ 19.5 |
| Options exercised | ( 362) | $ 17.9 |
| Options forfeited | ( 96) | |
| Options expired | ( 74) | |
| Options outstanding at September 30 | 1,628 | 17.9 |
| Options exercisable at September 30 | 634 |
As of September 30, 2025, December 31, 2024 and September 30, 2024, the exercise prices of stock options outstanding were $17.2, $17.9 and $17.9 (in dollars); the remaining contractual periods were 1.9 years, 2.6 years and 2.9 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 (Note 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% | 4.36 years | 0.63% | 1.01% | $ 14.82 |
| After 3 years | 30 | 22.6 | 49.16% | 4.63 years | 0.63% | 1.02% | 14.74 |
| After 4 years | 30 | 22.6 | 49.06% | 4.84 years | 0.63% | 1.03% | 14.74 |
| General employee | |||||||
| After 2 years | $ 30 | $ 22.6 | 51.45% | 4.02 years | 0.63% | 1.00% | $ 14.59 |
| After 3 years | 30 | 22.6 | 50.04% | 4.43 years | 0.63% | 1.02% | 14.71 |
| After 4 years | 30 | 22.6 | 49.10% | 4.76 years | 0.63% | 1.03% | 14.71 |
| Type of arrangement | Stock price (in dollars) | Exercise price (in dollars) | Expected price volatility (Note 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 years | - | 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.
E. Expenses incurred on equity-settled share-based payment transactions are shown below:
| Three months ended June 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Compensation costs of employee stock options | $ 636 | $ 1,158 |
| Compensation costs of capital increase | - | - |
| $ 636 | $ 1,158 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Compensation costs of employee stock options | $ 2,247 | $ 7,223 |
| Compensation costs of capital increase | - | 3,547 |
| $ 2,247 | $ 10,770 |
(15) Provisions for liabilities
| 2025 | |||
|---|---|---|---|
| Warranty | Decommissioning liabilities | Total | |
| At January 1 | $ 10,353 | $ 14,810 | $ 25,163 |
| Additional provisions | 14,225 | 141 | 14,366 |
| Utilisation/reversal during the period | ( 3,918) | - | ( 3,918) |
| At September 30 | $ 20,660 | $ 14,951 | $ 35,611 |
| 2024 | |||
| Warranty | Decommissioning liabilities | Total | |
| At January 1 | $ 11,994 | $ 18,123 | $ 30,117 |
| Additional provisions | 8,502 | 334 | 8,836 |
| Utilisation/reversal during the period | ( 7,840) | - | ( 7,840) |
| At September 30 | $ 12,656 | $ 18,457 | $ 31,113 |
Analysis of total provisions:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Current | $ 20,660 | $ 10,353 | $ 12,656 |
| Non-current | $ 14,951 | $ 14,810 | $ 18,457 |
A. Warranty
The Group's provision for warranty which was related to the sale of solar photovoltaic modules and the design of solar energy system was based on historical warranty data and management's judgements. The Group estimated the provision for warranty will be used within the next year.
B. Decommissioning liabilities
According to the Group’s lease contract for the plant, the Group 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 Group estimated the liabilities provision will be paid when moving the plant.
(16) Share capital
A. As of September 30, 2025, December 31, 2024 and September 30, 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 $671,675, $668,665 and $665,050, 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 | 301 | - |
| At September 30 | 67,168 | 66,505 |
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 effect date of the abovementioned shares was set on 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 the abovementioned shares was set on March 5, 2025 and the registration had been completed.
D. For the six months ended June 30, 2025, the Company’s employee share options was exercised by 144 thousand shares, of which 117 thousand shares were resolved by the Board of Directors. The effective date of the abovementioned shares was set on August 25, 2025. The registration for the aforementioned capital increase has not yet been completed as of November 11, 2025.
E. For the three months ended September 30, 2025, the Company’s employee share options was exercised by 265 thousand shares as resolved by the Board of Directors on November 11, 2025. The effective date of the abovementioned shares was set on November 25, 2025.
~38~
(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 | - | 2,247 | - | - | 2,247 |
| Exercise of employee stock options | 13,026 | ( 10,066) | - | - | 2,960 |
| Expired employee stock options | - | ( 489) | 489 | - | - |
| Expired unclaimed dividends | - | - | - | 2 | 2 |
| Exercise of disgorgement | - | - | - | 2 | 2 |
| At September 30 | $ 553,726 | $ 8,641 | $ 3,924 | $ 4 | $ 566,295 |
| 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 | - | 10,770 | - | - | 10,770 |
| Expired employee stock options | - | ( 3,357) | 3,357 | - | - |
| At September 30 | $ 528,963 | $ 23,237 | $ 3,357 | $ - | $ 555,557 |
(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 in accordance with the relevant laws and regulations, the appropriation of the remaining earnings along with the unappropriated earnings of prior years after retaining an appropriate amount based on the operational needs shall be proposed by the Board of Directors. The proposal of appropriation should be approved by the shareholders if dividends would be distributed by issuing new shares. The Company authorizes the Board of Directors attended by two-third or more of the directors, and a resolution by the majority of the directors in attendance,
to distribute all or part of the shareholders' dividends and bonus, capital surplus, or legal reserve in cash, and reported to 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) For the information relating to the distribution of earnings as approved by the Board of Directors and resolved by the shareholders' meeting, please refer to the "Market Observation Post System" at the website of the Taiwan Stock Exchange.
~40~
(19) Operating revenue
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Sales of goods contract | $ 472,870 | $ 530,584 |
| Service contract | 56,571 | 40,707 |
| Construction contract | 6,978 | 2,604 |
| $ 536,419 | $ 573,895 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Sales of goods contract | $ 1,610,498 | $ 1,686,973 |
| Service contract | 147,264 | 111,790 |
| Construction contract | 23,465 | 14,248 |
| $ 1,781,227 | $ 1,813,011 |
A. Disaggregation of revenue from contracts with customers
The Group 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:
| Taiwan | Europe | Others | Total | |||
|---|---|---|---|---|---|---|
| Solar energy | Semiconductor | Solar energy | Solar energy | Semiconductor | ||
| Three months ended September 30, 2025 | ||||||
| Sales of goods contract | $ 48,793 | $ 121,646 | $ 117,386 | $ 38,127 | $ 146,918 | $ 472,870 |
| Service contract | - | 56,527 | 44 | - | - | 56,571 |
| Construction contract | 6,978 | - | - | - | - | 6,978 |
| $ 55,771 | $ 178,173 | $ 117,430 | $ 38,127 | $ 146,918 | $ 536,419 | |
| Revenue recognition: | ||||||
| At a point in time | $ 48,793 | $ 178,173 | $ 117,430 | $ 38,127 | $ 146,918 | $ 529,441 |
| Over time | 6,978 | - | - | - | - | 6,978 |
| $ 55,771 | $ 178,173 | $ 117,430 | $ 38,127 | $ 146,918 | $ 536,419 | |
| Taiwan | Europe | Others | Total | |||
| Solar energy | Semiconductor | Solar energy | Solar energy | Semiconductor | ||
| Three months ended September 30, 2024 | ||||||
| Sales of goods contract | $ 52,516 | $ 88,754 | $ 209,649 | $ 44,383 | $ 135,282 | $ 530,584 |
| Service contract | 153 | 40,503 | 51 | - | - | 40,707 |
| Construction contract | 2,604 | - | - | - | - | 2,604 |
| $ 55,273 | $ 129,257 | $ 209,700 | $ 44,383 | $ 135,282 | $ 573,895 | |
| Revenue recognition: | ||||||
| At a point in time | $ 52,669 | $ 129,257 | $ 209,700 | $ 44,383 | $ 135,282 | $ 571,291 |
| Over time | 2,604 | - | - | - | - | 2,604 |
| $ 55,273 | $ 129,257 | $ 209,700 | $ 44,383 | $ 135,282 | $ 573,895 |
| Taiwan | Europe | Others | Total | |||
|---|---|---|---|---|---|---|
| Solar energy | Semiconductor | Solar energy | Solar energy | Semiconductor | ||
| Nine months ended September 30, 2025 | ||||||
| Sales of goods contract | $ 147,325 | $ 366,823 | $ 569,643 | $ 103,329 | $ 423,378 | $ 1,610,498 |
| Service contract | - | 147,143 | 121 | - | - | 147,264 |
| Construction contract | 23,465 | - | - | - | - | 23,465 |
| $ 170,790 | $ 513,966 | $ 569,764 | $ 103,329 | $ 423,378 | $ 1,781,227 | |
| Revenue recognition: | ||||||
| At a point in time | $ 147,325 | $ 513,966 | $ 569,764 | $ 103,329 | $ 423,378 | $ 1,757,762 |
| Over time | 23,465 | - | - | - | - | 23,465 |
| $ 170,790 | $ 513,966 | $ 569,764 | $ 103,329 | $ 423,378 | $ 1,781,227 | |
| Taiwan | Europe | Others | Total | |||
| Solar energy | Semiconductor | Solar energy | Solar energy | Semiconductor | ||
| Nine months ended September 30, 2024 | ||||||
| Sales of goods contract | $ 157,034 | $ 238,732 | $ 814,480 | $ 124,852 | $ 351,875 | $ 1,686,973 |
| Service contract | 183 | 110,043 | 1,564 | - | - | 111,790 |
| Construction contract | 14,248 | - | - | - | - | 14,248 |
| $ 171,465 | $ 348,775 | $ 816,044 | $ 124,852 | $ 351,875 | $ 1,813,011 | |
| Revenue recognition: | ||||||
| At a point in time | $ 157,217 | $ 348,775 | $ 816,044 | $ 124,852 | $ 351,875 | $ 1,798,763 |
| Over time | 14,248 | - | - | - | - | 14,248 |
| $ 171,465 | $ 348,775 | $ 816,044 | $ 124,852 | $ 351,875 | $ 1,813,011 |
B. Contract assets and liabilities
The Group has recognized the following revenue-related contract assets and liabilities:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | January 1, 2024 | |
|---|---|---|---|---|
| Contract assets: | ||||
| Construction contract | $ 11,315 | $ - | $ - | |
| Contract liabilities: | ||||
| Sales of goods contract | $ 13,380 | $ 9,220 | $ 21,868 | $ 18,370 |
| Construction contract | 14,808 | 1,181 | 1,181 | 4,005 |
| $ 28,188 | $ 10,401 | $ 23,049 | $ 22,375 |
(a) Significant changes in contract assets and liabilities
The Group’s liabilities from solar module sales contract changed due to the impact from the business cycle of the overseas 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 period:
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Sales of goods contract | $ 60 | $ 1,714 |
| Construction contract | - | - |
| $ 60 | $ 1,714 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Sales of goods contract | $ 5,532 | $ 13,918 |
| Construction contract | 1,181 | 2,871 |
| $ 6,713 | $ 16,789 |
(c) The transaction price of unperformed performance obligation
As of September 30, 2025, the total price of the Group’s unperformed performance obligation was $51,361, will continuously be recognised as revenue following the completion of design and construction of solar energy, the construction was expected to be completed in 2025 to 2026.
(20) Interest income
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Interest income from bank | $ 1,832 | $ 2,005 |
| Other interest income | 27 | 39 |
| $ 1,859 | $ 2,044 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Interest income from bank | $ 7,134 | $ 4,688 |
| Other interest income | 83 | 98 |
| $ 7,217 | $ 4,786 |
(21) Other income
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Government grant income | ($ 4) | $ - |
| Others | 1,013 | 974 |
| $ 1,009 | $ 974 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Reclassification of overdue advance receipts as income | $ 10,477 | $ - |
| Government grant income | 2,923 | 30 |
| Others | 3,036 | 3,867 |
| $ 16,436 | $ 3,897 |
(22) Other gains and losses
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Net losses on financial assets and liabilities at fair value through profit or loss | ($ 2,007) | ($ 2,250) |
| Impairment loss - property, plant and equipment | - | ( 10,971) |
| Net exchange gains (losses) | 12,654 | ( 3,092) |
| Impairment loss - investments accounted for using the equity method | - | ( 7,086) |
| Gains on disposal of property, plant and equipment | 2 | 77 |
| Compensation losses | - | - |
| Others | ( 120) | - |
| $ 10,529 | ($ 23,322) | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Net losses on financial assets and liabilities at fair value through profit or loss | ($ 705) | ($ 5,582) |
| Impairment loss - property, plant and equipment | - | ( 21,465) |
| Net exchange (losses) gains | ( 32,570) | 12,501 |
| Impairment loss - investments accounted for using the equity method | - | ( 7,086) |
| Gains on disposal of property, plant and equipment | 2 | 77 |
| Compensation losses | ( 11) | - |
| Others | ( 122) | ( 55) |
| ($ 33,406) | ($ 21,610) |
(23) Finance costs
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Interest expense | ||
| Bank loan | $ 427 | $ 1,210 |
| Lease liabilities | 286 | 217 |
| Decommissioning liabilities | 46 | 112 |
| $ 759 | $ 1,539 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Interest expense | ||
| Bank loan | $ 1,305 | $ 3,431 |
| Lease liabilities | 980 | 694 |
| Decommissioning liabilities | 141 | 334 |
| $ 2,426 | $ 4,459 |
(24) Additional information of expenses by nature
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Employee benefit expense | $ 121,419 | $ 114,018 |
| Transportation and charges for exports | 31,677 | 35,944 |
| Operating lease payments | 6,839 | 15,716 |
| Charges for services | 7,691 | 9,857 |
| Depreciation charges on property, plant and equipment | 5,223 | 5,570 |
| Depreciation charges on right-of-use assets | 6,870 | 10,602 |
| Amortization charges on intangible assets | 562 | 629 |
| $ 180,281 | $ 192,336 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Employee benefit expense | $ 361,782 | $ 352,774 |
| Transportation and charges for exports | 103,449 | 119,683 |
| Operating lease payments | 24,457 | 34,379 |
| Charges for services | 26,234 | 27,712 |
| Depreciation charges on property, plant and equipment | 14,985 | 18,863 |
| Depreciation charges on right-of-use assets | 20,782 | 31,189 |
| Amortization charges on intangible assets | 1,620 | 2,227 |
| $ 553,309 | $ 586,827 |
(25) Employee benefit expense
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Wages and salaries | $ 101,123 | $ 94,330 |
| Labor and health insurance fees | 9,843 | 8,388 |
| Pension costs | 4,716 | 4,274 |
| Directors’ remuneration | 564 | 250 |
| Share-based compensation cost | 636 | 1,158 |
| Other employee benefit expense | 4,537 | 5,618 |
| $ 121,419 | $ 114,018 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Wages and salaries | $ 302,727 | $ 288,831 |
| Labor and health insurance fees | 28,560 | 26,229 |
| Pension costs | 13,458 | 12,467 |
| Directors’ remuneration | 1,414 | 750 |
| Share-based compensation cost | 2,247 | 10,770 |
| Other employee benefit expense | 13,376 | 13,727 |
| $ 361,782 | $ 352,774 |
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 the amount distributed as rank-and-file employees’ compensation and shall not be higher than 2% for directors’ remuneration.
B. For the three months and nine months ended September 30, 2025 and 2024, employees’ compensation was accrued at $1,886, $0, $3,984 and $0, respectively; while directors’ remuneration was accrued at $314, $0, $664 and $0, respectively. The aforementioned amounts were recognised in salary expenses.
The employees’ compensation and directors’ remuneration were estimated and accrued based on 3% and 0.5% of distributable profit of current year for the nine months ended September 30, 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. Components of income tax expense (benefit):
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Current tax: | ||
| Current tax on profit for the period | $ 9,426 | $ 3,008 |
| Deferred tax: | ||
| Origination and reversal of temporary differences | 2,761 | ( 5,578) |
| Income tax expense (benefit) | $ 12,187 | ($ 2,570) |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Current tax: | ||
| Current tax on profit for the period | $ 28,209 | $ 3,049 |
| (Overestimation) underestimation of income tax in prior years | ( 1,598) | 1,413 |
| Tax on undistributed earnings | - | 1,561 |
| Deferred tax: | ||
| Origination and reversal of temporary differences | 2,558 | ( 39,127) |
| Income tax expense (benefit) | $ 29,169 | ($ 33,104) |
B. The Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority.
(27) Earnings (deficits) per share
| Three months ended September 30, 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 | $ 48,505 | 67,090 | $ 0.72 |
| Diluted earnings per share | |||
| Dilutive effect of potential ordinary shares | |||
| Employees’ option | 755 | ||
| Employees’ compensation | 48 | ||
| Profit attributable to owners of the parent plus dilutive effect of potential ordinary shares | $ 48,505 | 67,893 | $ 0.71 |
| Three months ended September 30, 2024 | |||
|---|---|---|---|
| Amount after tax | Weighted average number of ordinary shares outstanding (share in thousands) | Deficits per share (in dollars) | |
| Basic deficits per share | |||
| Deficit attributable to owners of the parent | ($ 12,315) | 66,505 | ($ 0.19) |
| Diluted deficits per share (Note) | |||
| Deficit attributable to owners of the parent plus dilutive effect of potential ordinary shares | ($ 12,315) | 66,505 | ($ 0.19) |
| Nine months ended September 30, 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 | $ 99,493 | 67,014 | $ 1.48 |
| Diluted earnings per share | |||
| Dilutive effect of potential ordinary shares Employees' option | 710 | ||
| Employees' compensation | 102 | ||
| Profit attributable to owners of the parent plus dilutive effect of potential ordinary shares | $ 99,493 | 67,826 | $ 1.47 |
| Nine months ended September 30, 2024 | |||
| Amount after tax | Weighted average number of ordinary shares outstanding (share in thousands) | Deficits per share (in dollars) | |
| Basic deficits per share | |||
| Deficit attributable to owners of the parent | ($ 122,556) | 63,927 | ($ 1.92) |
| Diluted deficits per share (Note) | |||
| Deficit attributable to owners of the parent plus dilutive effect of potential ordinary shares | ($ 122,556) | 63,927 | ($ 1.92) |
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 deficits per share for the three months and nine months ended September 30, 2024.
(28) Supplemental cash flow information
Investing activities with partial cash payments:
| Nine months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Purchase of property, plant and equipment (Note) | $ 21,865 | $ 5,061 |
| Add: Opening balance of payable on equipment | 2,378 | 740 |
| Ending balance of prepayment for equipment | 5,542 | 890 |
| Less: Ending balance of payable on equipment | ( 4,036) | ( 989) |
| Opening balance of prepayment for equipment | ( 1,872) | ( 1,073) |
| Cash paid during the period | $ 23,877 | $ 4,629 |
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 | 17,317 | ( 19,144) | ( 1,827) |
| Interest expense paid (Note) | - | ( 980) | ( 980) |
| Changes in other non-cash items | - | 17,562 | 17,562 |
| At September 30 | $ 56,259 | $ 36,512 | $ 92,771 |
| 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 | ( 81,896) | ( 25,469) | ( 107,365) |
| Interest expense paid (Note) | - | ( 694) | ( 694) |
| Changes in other non-cash items | - | 16,106 | 16,106 |
| At September 30 | $ 93,216 | $ 39,216 | $ 132,432 |
Note: Shown as cash flows from operating activities.
- RELATED PARTY TRANSACTION
(1) Names of related parties and relationship
| Names of related parties | Relationship with the Group |
|---|---|
| Directors, general managers and vice general manager | The Group’s key management |
| Hefei Chenling Technology Co., Ltd. (Hefei Chenling) | The Group’s associate |
(2) Significant related party transactions
A. Operating expense
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Hefei Chenling | $ 19,917 | $ 2,434 |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Hefei Chenling | $ 43,608 | $ 6,922 |
The Group's sales price to related parties is based on the agreed selling price and the payment condition is to receive payment within 90 days after the sale. The transaction prices of goods are determined based on mutual agreement and are approximately the same as those with other counterparties. The transaction price and payment terms of the sale of raw materials are not comparable with the same type of transaction by the Group.
B. Receivable from related parties
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Hefei Chenling | |||
| Accounts receivable | $ 36,341 | $ 6,175 | $ 4,155 |
| Less: Allowance for loss | ( 588) | ( 16) | ( 445) |
| $ 35,753 | $ 6,159 | $ 3,710 | |
| Other receivables | $ 445 | $ 82 | $ - |
The ageing analysis of the aforementioned accounts receivable according to the past due date was as follows:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Without past due | $ 30,656 | $ 6,175 | $ 2,385 |
| Up to 1- 60 days | 5,685 | - | 956 |
| Up to 61- 120 days | - | - | 814 |
| $ 36,341 | $ 6,175 | $ 4,155 |
(3) Key management compensation
| Three months ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Salaries and other short-term employee benefits | $ 20,228 | $ 22,287 |
| Share-based payments | 295 | 342 |
| Post-employment benefits | 334 | 352 |
| $ 20,857 | $ 22,981 | |
| Nine months ended September 30 | ||
| 2025 | 2024 | |
| Salaries and other short-term employee benefits | $ 59,837 | $ 67,944 |
| Share-based payments | 1,222 | 3,229 |
| Post-employment benefits | 996 | 1,062 |
| $ 62,055 | $ 72,235 |
- PLEDGED ASSETS
The Group’s assets pledged at carrying amount are as follows:
| Pledged asset | Purpose | September 30, 2025 | December 31, 2024 | September 30, 2024 |
|---|---|---|---|---|
| Guarantee deposits paid (shown as other non-current assets) | Custom deposits and guarantees for lease | $ 18,790 | $ 24,671 | $ 27,048 |
- 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:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Unused letters of guarantee | $ 60,396 | $ 83,899 | $ 72,721 |
B. As of September 30, 2025, the amount of contracted but not yet paid commitments for the purchase of equipment and computer software was $13,564.
- SIGNIFICANT DISASTER LOSS
None.
- SIGNIFICANT SUBSEQUENT EVENTS
None.
~52~
12. OTHERS
(1) Capital management
The Group’s objectives when managing capital are to safeguard the Group’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 Group 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
| September 30, 2025 | December 31, 2024 | September 30, 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 | |||
| Cash and cash equivalents | $ 923,110 | $ 856,943 | $ 773,756 |
| Notes receivable | 5,620 | 1,867 | 13,232 |
| Accounts receivable (including related parties) | 337,179 | 269,702 | 292,387 |
| Other receivables (including related parties) | 1,937 | 2,777 | 3,626 |
| Guarantee deposits paid | 18,790 | 24,671 | 27,048 |
| $ 1,286,636 | $ 1,155,960 | $ 1,110,049 | |
| Financial liabilities | |||
| Financial liabilities at fair value through profit or loss | |||
| Financial liabilities held for trading | $ 1,117 | $ - | $ 1,201 |
| Financial liabilities at amortized cost | |||
| Short-term borrowings | $ 56,259 | $ 38,942 | $ 93,216 |
| Accounts payable | 177,257 | 128,684 | 107,231 |
| Other payables | 200,868 | 169,624 | 200,772 |
| $ 434,384 | $ 337,250 | $ 401,219 | |
| Lease liabilities | $ 36,512 | $ 39,074 | $ 39,216 |
B. Financial risk management policies
(a) The Group’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 Group, 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 (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’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 Group 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, JPY and RMB. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.
ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group 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 Group hedges foreign exchange rate by using forward exchange contracts. However, the Group 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 Group’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD; other certain subsidiaries’ functional currency: EUR, USD, AUD, JPY and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:
~53~
| September 30, 2025 | |||
|---|---|---|---|
| (Foreign currency: functional currency) | Foreign currency amount(in thousands) | Exchange rate | Book value(NTD) |
| Financial Assets | |||
| Monetary items | |||
| EUR:NTD | $5,614 | 35.77 | $200,813 |
| USD:NTD | 6,107 | 30.45 | 185,928 |
| AUD:NTD | 4,883 | 20.11 | 98,197 |
| RMB:NTD | 2,891 | 4.27 | 12,347 |
| Financial Liabilities | |||
| Monetary items | |||
| EUR:NTD | $3,733 | 35.77 | $133,529 |
| USD:NTD | 1,145 | 30.45 | 34,860 |
| RMB:NTD | 1,176 | 4.27 | 5,023 |
| Other non-current liabilities | |||
| RMB:NTD | $2,406 | 4.27 | $10,278 |
| 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 |
| 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 |
| Other non-current liabilities | |||
| RMB:NTD | $530 | 4.48 | $2,374 |
| September 30, 2024 | |||
| (Foreign currency: functional currency) | Foreign currency amount(in thousands) | Exchange rate | Book value(NTD) |
| Financial Assets | |||
| Monetary items | |||
| EUR:NTD | $7,117 | 35.38 | $251,799 |
| USD:NTD | 7,377 | 31.65 | 233,482 |
| AUD:NTD | 4,794 | 21.93 | 105,132 |
| RMB:NTD | 1,083 | 4.52 | 4,898 |
| Investments accounted for using the equity method | |||
| RMB:NTD | $1,203 | 4.52 | $5,442 |
| Financial Liabilities | |||
| Monetary items | |||
| EUR:NTD | $4,239 | 35.38 | $149,976 |
| USD:NTD | 662 | 31.65 | 20,952 |
| RMB:NTD | 536 | 4.52 | 2,424 |
v. Total exchange gain (loss), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three months and nine months ended September 30, 2025 and 2024 amounted to $12,654, ($3,092), ($32,570) and $12,501, respectively.
vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:
| Nine months ended September 30, 2025 | |||
|---|---|---|---|
| Sensitivity analysis | |||
| (Foreign currency: functional currency) | Degree of variation | Effect on profit or loss | Effect on other comprehensive income |
| Financial Assets | |||
| Monetary items | |||
| EUR:NTD | 1% | $ 2,008 | $ - |
| USD:NTD | 1% | 1,859 | - |
| AUD:NTD | 1% | 982 | - |
| RMB:NTD | 1% | 123 | - |
| Financial Liabilities | |||
| Monetary items | |||
| EUR:NTD | 1% | $ 1,335 | $ - |
| USD:NTD | 1% | 349 | - |
| RMB:NTD | 1% | 50 | - |
| Nine months ended September 30, 2024 | |||
| Sensitivity analysis | |||
| (Foreign currency: functional currency) | Degree of variation | Effect on profit or loss | Effect on other comprehensive income |
| Financial Assets | |||
| Monetary items | |||
| EUR:NTD | 1% | $ 2,518 | $ - |
| USD:NTD | 1% | 2,335 | - |
| AUD:NTD | 1% | 1,051 | - |
| RMB:NTD | 1% | 49 | - |
| Financial Liabilities | |||
| Monetary items | |||
| EUR:NTD | 1% | $ 1,500 | $ - |
| USD:NTD | 1% | 210 | - |
| RMB:NTD | 1% | 24 | - |
(b) Cash flow and fair value interest rate risk
i. The Group's main interest rate risk arises from short-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. As of September 30, 2025 and 2024, the Group's borrowings at variable rate were mainly denominated in NTD and Euro.
ii. The Group’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 nine months ended September 30, 2025 and 2024 would have increased/decreased by $84 and $140, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.
(c) Credit risk
i. Credit risk refers to the risk of financial loss to the Group 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 Group manages their credit risk taking into consideration the entire group’s concern. Banks and financial institutions only with optimal credit ratings are accepted. According to the Group’s credit policy, each local entity in the Group 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 Group 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 Group classifies customers’ accounts receivable in accordance with customer types. The Group applies the simplified approach to estimate expected credit loss under the provision matrix basis.
~56~
vi. The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. As of September 30, 2025, December 31, 2024 and September 30, 2024, the provision matrix is as follows:
| At September 30, 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 |
|---|---|---|---|---|---|---|
| Group 1 | ||||||
| Expected loss rate | 0.75%–1.09% | 5.72%–50.19% | 26.66%–91.29% | - | 100% | |
| Total book value | $ 60,802 | $ 2,287 | $ 851 | $ - | $ 1,226 | $ 65,166 |
| Loss allowance | $ 522 | $ 531 | $ 777 | $ - | $ 1,226 | $ 3,056 |
| 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 | |
| Group 2 | ||||||
| Expected loss rate | 0.16% | 4.30% | 38.65% | 57.63% | 100% | |
| Total book value | $ 228,780 | $ 7,043 | $ 2,111 | $ 472 | $ 16 | $ 238,422 |
| Loss allowance | $ 372 | $ 303 | $ 816 | $ 272 | $ 16 | $ 1,779 |
| 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 | |
| At December 31, 2024 | ||||||
| Group 1 | ||||||
| Expected loss rate | 0.21%–1.87% | 3.02%–27.87% | 29.77%–64.57% | - | 100% | |
| Total book value | $ 46,577 | $ 6,641 | $ 322 | $ - | $ - | $ 53,540 |
| Loss allowance | $ 520 | $ 518 | $ 96 | $ - | $ - | $ 1,134 |
| 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 | |
| Group 2 | ||||||
| Expected loss rate | 0.25% | 28.11% | 45.82% | - | 100% | |
| Total book value | $ 207,538 | $ 3,494 | $ 1,065 | $ - | $ - | $ 212,097 |
| Loss allowance | $ 510 | $ 982 | $ 488 | $ - | $ - | $ 1,980 |
| 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 | |
| At September 30, 2024 | ||||||
| Group 1 | ||||||
| Expected loss rate | 0.49%–1.95% | 2.35%–37.67% | 28.96%–71.39% | 36.69%–79.53% | 100% | |
| Total book value | $ 84,241 | $ 13,546 | $ 212 | $ 1,210 | $ 509 | $ 99,718 |
| Loss allowance | $ 1,357 | $ 972 | $ 135 | $ 444 | $ 509 | $ 3,417 |
| 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 | |
| Group 2 | ||||||
| Expected loss rate | 0.24% | 17.84% | 37.56% | - | 100% | |
| Total book value | $ 180,743 | $ 9,528 | $ 2,194 | $ - | $ - | $ 192,465 |
| Loss allowance | $ 438 | $ 1,700 | $ 824 | $ - | $ - | $ 2,962 |
Note: Customer types that are classified based on the Group's credit risk management policy are as follows:
Group 1: The credit risk of customers has been insured by professional insurance companies.
Group 2: The credit risk of customers has not been insured by professional insurance companies.
Considering that the accounts receivable are insured, the Group did not recognise the impairment loss amounting to $2,673, $1,020 and $2,873 on September 30, 2025, December 31, 2024 and September 30, 2024, respectively.
vii. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable and receivables from related parties are as follows:
| 2025 | |||
|---|---|---|---|
| Receivables from non-related parties | Receivables from related parties | ||
| Group assessment | Group assessment | Total | |
| At January 1 | $ 2,094 | $ 16 | $ 2,110 |
| Provision for impairment | 52 | 572 | 624 |
| Effect of exchange rate changes | 16 | - | 16 |
| At September 30 | $ 2,162 | $ 588 | $ 2,750 |
| 2024 | |||
| Receivables from non-related parties | Receivables from related parties | ||
| Group assessment | Group assessment | Total | |
| At January 1 | $ 1,807 | $ 34 | $ 1,841 |
| Provision for impairment | 1,678 | 411 | 2,089 |
| Effect of exchange rate changes | 21 | - | 21 |
| At September 30 | $ 3,506 | $ 445 | $ 3,951 |
(d) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group'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 Group treasury. Group 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 Group has the following undrawn borrowing facilities:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Floating rate: | |||
| Expiring within one year | $ 1,901,221 | $ 2,178,926 | $ 1,816,669 |
iv. The Group 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 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:
September 30, 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 | $ 56,622 | $ - | $ - | $ - |
| Lease liabilities | 25,352 | 7,709 | 4,501 | - |
| 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 | - |
| September 30, 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 | $ 94,350 | $ - | $ - | $ - |
| Lease liabilities | 20,231 | 13,345 | 7,081 | - |
v. The Group 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 Group'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, guarantee deposits paid, short-term borrowings, accounts payable and other payables 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 (liabilities) are as follows:
| September 30, 2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Liabilities | ||||
| Recurring fair value measurements | ||||
| Financial liabilities at fair value through profit or loss | ||||
| Forward exchange contracts (Note) | $ - | ($ 1,117) | $ - | ($ 1,117) |
| 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 |
| September 30, 2024 | Level 1 | Level 2 | Level 3 | Total |
| Liabilities | ||||
| Recurring fair value measurements | ||||
| Financial liabilities at fair value through profit or loss | ||||
| Forward exchange contracts (Note) | $ - | ($ 1,201) | $ - | ($ 1,201) |
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 nine months ended September 30, 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): None.
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 1.
E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 2.
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.
- SEGMENT INFORMATION
(1) General information
The Group's management has determined the reportable segments based on the reports that the Board of Directors used to make strategic decisions. The Board of Directors considers the business from product type perspective, and the operating segments are classified into two segments: solar energy and semiconductor. The primary source of income of the disclosed operating segments arise from the manufacturing and trading of solar energy system and semiconductor supplies.
(2) Segment information
The segment information provided to the chief operating decision-maker for the reportable segments is as follows:
| Nine months ended September 30, 2025 | |||
|---|---|---|---|
| Solar energy | Semiconductor | Total | |
| External segment revenues | $ 843,883 | $ 937,344 | $ 1,781,227 |
| Internal segment revenues | - | - | - |
| Segment revenues | $ 843,883 | $ 937,344 | $ 1,781,227 |
| Segment freight and charges for exports | $ 95,622 | $ 7,827 | $ 103,449 |
| Segment impairment losses | $ - | $ - | $ - |
| Segment net (loss) income | ($ 160,339) | $ 289,001 | $ 128,662 |
| Nine months ended September 30, 2024 | |||
| Solar energy | Semiconductor | Total | |
| External segment revenues | $ 1,112,361 | $ 700,650 | $ 1,813,011 |
| Internal segment revenues | - | - | - |
| Segment revenues | $ 1,112,361 | $ 700,650 | $ 1,813,011 |
| Segment freight and charges for exports | $ 111,925 | $ 7,758 | $ 119,683 |
| Segment impairment losses | $ 21,465 | $ - | $ 21,465 |
| Segment net (loss) income | ($ 326,439) | $ 170,779 | ($ 155,660) |
(3) Reconciliation for segment income (loss)
A. Sales between segments are carried out at arm’s length. The revenue from external parties reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.
B. Measurement of profit (loss) performance is based on operating profit (loss) before tax. Therefore, reconciliation for segment income (loss) is not required.
(The blank)
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WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more
Nine months ended September 30, 2025
Table 1
| Purchaser/seller | Counterparty | Relationship with the counterparty | Transaction | Differences in transaction terms compared to third party transactions (Note) | Notes/accounts receivable (payable) | Footnote | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Purchases (sales) | Amount | Percentage of total purchases (sales) | Credit term | Unit price | Credit term | Balance | Percentage of total notes/accounts receivable (payable) | ||||
| The Company | WINAICO Deutschland GmbH | The Company’s subsidiary | Sales | ($ 535,641) | (31%) | Note | Note | Note | $ 140,578 | 28% |
Note: Transaction terms to related party transaction are approximately the same as the transaction terms to third party transactions.
Table 1, page 1
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more
September 30, 2025
Table 2
Expressed in thousands of NTD
(Except as otherwise indicated)
| Creditor | Counterparty | Relationship with the counterparty | Balance as at September 30, 2025 | Turnover rate | Overdue receivables | Amount collected subsequent to the balance sheet date | Allowance for doubtful accounts | |
|---|---|---|---|---|---|---|---|---|
| Amount | Action taken | |||||||
| The Company | WINAICO Deutschland GmbH | The Company's subsidiary | $ 140,578 | 6.25 times | $ - | - | $ 29,486 | $ - |
Note: Collection data as of October 15, 2025.
Table 2, page 1
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
Significant inter-company transactions during the reporting period
Nine months ended September 30, 2025
Table 3
| Number (Note 1) | Company name | Counterparty | Relationship (Note 2) | 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 | $ 535,641 | Note 5 | 30.07% |
| 0 | n | n | 1 | Accounts receivable | 140,578 | Note 5 | 6.47% |
| 0 | n | WINAICO Australia PTY Ltd. | 1 | Sales revenues | 76,503 | Note 6 | 4.29% |
| 0 | n | n | 1 | Accounts receivable | 77,109 | Note 6 | 3.54% |
Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1)Parent company is '0'.
(2)The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1)Parent company to subsidiary.
(2)Subsidiary to parent company.
(3)Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Disclosing only the amount of NT$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.
Expenses in thousands of NTD
(Except as otherwise indicated)
Table 3, page 1
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
Information on investees
Nine months ended September 30, 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 September 30, 2025 | Net profit (loss) of the investee for the nine months ended September 30, 2025 | Investment income (loss) recognised by the Company for the nine months ended September 30, 2025 | Footnote | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as of September 30, 2025 | Balance as of December 31, 2024 | Number of shares | Ownership (%) | Book value | |||||||
| The Company | Winaico B.V. | Netherlands | Investment holdings | $ 632,053 | $ 632,053 | 180 | 100% | $ 16,271 ($ | 25,361) | ($ 25,361) | |
| o | WINAICO Delaware Co., Ltd. | USA | Sales of solar photovoltaic modules | 39,457 | 39,457 | 300,000 | 100% | 20,214 | 9,708 | 9,708 | |
| o | WINAICO Australia PTY Ltd. | Australia | Sales of solar photovoltaic modules | 33,869 | 33,869 | 1,600,000 | 100% | 3,353 ( | 4,758) ( | 4,758) | |
| o | WINAICO Japan K.K. | Japan | Sales of solar photovoltaic modules | 10,994 | 10,994 | 4,000 | 100% | 127 ( | 166) ( | 166) | |
| o | WINAICO Solar Projekt 1 GmbH | Germany | Operation of solar power plant | 46,927 | 3,841 | 2,240,000 | 100% | 518 ( | 19) ( | 15) | Note |
| o | Win Win Green Energy Co.,Ltd. | Taiwan | Service of energy management consulting | 1,000 | 1,000 | 100,000 | 100% | 1,058 ( | 31) ( | 31) | |
| o | WINAICO Deutschland GmbH | Germany | Sales of solar photovoltaic modules | 203,203 | - | 1 | 100% | 13,228 ( | 20,832) | 4,514 | Note |
| WINAICO B.V. | WINAICO Solar Projekt 1 GmbH | Germany | Operation of solar power plant | - | 43,086 | - | - | - ( | 19) | - | Note |
| o | WINAICO Deutschland GmbH | Germany | Sales of solar photovoltaic modules | - | 203,203 | - | - | - ( | 20,832) | - | Note |
Note: Due to the Group's operational considerations, the Company simplified the investment structure in the second quarter of 2025.
WIN WIN PRECISION TECHNOLOGY CO., LTD. AND SUBSIDIARIES
Information on investments in Mainland China
Nine months ended September 30, 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 | Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine months ended September 30, 2025 | Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2025 | Net income of investee for the nine months ended September 30, 2025 | Ownership held by the Company (direct or indirect)(%) | Investment income (loss) recognised by the Company for the nine months ended September 30, 2025 (Note 2) | Book value of investments in Mainland China as of September 30, 2025 | Accumulated amount of investment income remitted back to Taiwan as of September 30, 2025 | Footnote | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mainland China | Remitted back to Taiwan | ||||||||||||
| Win Win Precision Technology Nanjing Co., Ltd. | Service provision and investment | $ 9,060 | 1 | $ 9,060 | $ - | $ - | $ 9,060 | $ 734 | 100% ($ | 7,170) | $ 6,873 | $ - | Note 3 |
| Hefei Chenling Technology Co., Ltd. | Sales of consumable materials of semiconductor equipment | 43,888 | 3 | - | - | - | - | 9,268 | 40% | - ( | 10,278) | - | Note 3 |
| Company name | Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 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 | $ | 952,913 |
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 nine months ended September 30, 2025 were based on the financial statements that were not reviewed 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.
Table 5, page 1