Stock Code: 6916

Winstar Display Co., Ltd. and Subsidiaries

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

Address: 2F., No. 43, Keya Road, Daya District, Taichung City

Tel: (04)25689987

Declaration of consolidation of financial statements of affiliates

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 (From January 1, 2025 to December 31, 2025) are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standards No. 10. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we did not prepare a separate set of consolidated financial statements of affiliates.

Hereby declare

Company Name: Winstar Display Co., Ltd.

President: Yu-Pin Liao

March 10, 2026

Independent Auditors' Report

To the Board of Directors and Shareholders of Winstar Display Co., Ltd.:

Opinion

We have completed our audit of Winstar Display Co., Ltd. and its subsidiaries (collectively referred to as Winstar Group) Consolidated Balance Sheet for December 31, 2025 and 2024; and Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Equity, Consolidated Statements of Cash Flows and Notes to the Consolidated Financial Statements (including a summary of significant accounting policies) for January 1 – December 31, 2025 and 2024.

In our opinion, the consolidated financial statements referred to above have been prepared, in all material respects, in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards(IFRS), International Accounting Standards(IAS), IFRIC Interpretations(IFRIC) and SIC Interpretation(SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and fairly present the consolidated financial position of Winstar Group as of December 31, 2025 and 2024, and the consolidated financial performance and consolidated cash flow from January 1 to December 31, 2025 and 2024.

Basis for Opinion

We have performed entrusted audit work in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our

report. Our personnel subject to standards of independence have maintained detached independence from Winstar Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and have performed other responsibilities under that Norm. We believe that sufficient and appropriate audit evidence has been obtained to serve as a basis for expressing an audit opinion.

Key Audit Matter

Key audit matters refer to the most important matters for the audit of Winstar Group's 2025 consolidated financial statements based on our professional judgment. The matter was addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on the matter.

The key audit matter for the Group's 2025 consolidated financial statements is stated as follows:

Authenticity of revenue recognition from specific customers

Winstar Group's operating revenue mainly comes from the production and sales of LCD modules and OLED display modules. The operating revenue in 2025 decreased from the previous year due to changes in market demand. As transaction amount of a specific customer is material to operating revenue as a whole, authenticity of revenue recognition for specific customers is listed as a key audit matter. Please refer to Note 4 to the financial statements for the relevant accounting policies for revenue recognition.

In response to this key audit matter, we perform the following audit procedures:

Understand and evaluate the effectiveness of the design and execution of internal control related to audit risks in the sales and collection cycle.
We select a sample of the operating revenue of specific customers, and review the relevant documents and payment vouchers for the operating revenue recognized to confirm the authenticity of the operating revenue recognized.

Other Matters

Winstar Display Co., Ltd. has prepared parent company only financial statements for 2025 and 2024, and the audit reports with unmodified opinions that we have issued are on file for reference.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS, IAS, IFRIC and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

When compiling the consolidated financial statements, management's responsibilities also include disclosing the evaluation of Winstar Group's ability to continue as a going concern and related matters, and the adoption of a going concern basis of accounting unless management intends to liquidate Winstar Group or to cease operations or there is no practical alternative to liquidation or closure.

The units charged with governance of Winstar Group (including the Audit Committee) are responsible for supervising the financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

As part of an audit in accordance with auditing standards, we exercise professional judgment and skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
5 -

fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of Winstar Group.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of Winstar Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or circumstances may result in Winstar Group no longer having the ability to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence for the financial information of the constituent entities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of Group audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have

complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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

The engagement partners on the audits resulting in this independent auditors' report are Li-Wei Liu and Ting-Chien Su.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 27, 2026

Winstar Display Co., Ltd. and Subsidiaries
Consolidated balance sheets
December 31, 2025 and 2024
Unit: NT$ thousands

Code	Asset	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current asset
1100	Cash and cash equivalents (Note 4 and 6)	$ 434,090	18	$ 700,237	28
1136	Financial assets at amortized cost - current (Note 4, 7 and 29)	114,761	5	94,966	4
1150	Notes receivable (Note 4, 9, 21 and 27)	3,954	-	2,348	-
1170	Trade receivables (Note 4, 9, 21 and 28)	256,335	10	238,945	10
1200	Other receivables(Note 4)	2,946	-	3,393	-
1220	Current tax assets (Note 4 and 23)	4,647	-	1,571	-
130X	Inventories (Note 4 and 10)	368,466	15	332,676	13
1470	Other current assets (Note 16)	70,435	3	52,962	2
11XX	Total current assets	1,255,634	51	1,427,098	57
Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current (Note 4 and 8)	18,600	1	8,884	-
1535	Financial assets at amortized cost - non-current (Note 4, 7 and 29)	50,806	2	29,572	1
1550	Investments accounted for using the equity method (Note 4 and 12)	6,702	-	8,918	-
1600	Property, Plant and Equipment (Note 4, 13 and 29)	524,480	22	343,583	14
1755	Right-of-use assets (Note 4, 14, 28 and 29)	190,214	8	259,123	11
1760	Investment property (Note 4, 15 and 29)	82,700	3	82,979	3
1780	Intangible assets(Note 4)	10,267	-	8,940	1
1840	Deferred tax assets (Note 4 and 23)	92,627	4	80,428	3
1990	Other non-current assets (Note 4 and 16)	207,463	9	235,920	10
15XX	Total non-current assets	1,183,859	49	1,058,347	43
1XXX	Total assets	$ 2,439,493	100	$ 2,485,445	100
Code	Liabilities and Equity
Current liabilities
2100	Short-term borrowings (Note 17 and 29)	$ 493,861	20	$ 371,875	15
2130	Contract liabilities - current (Note 4, 21 and 28)	72,019	3	81,906	3
2150	Notes payable	11,183	1	12,950	1
2170	Trade payables (Note 27)	257,517	11	258,665	10
2200	Other payables (Note 18)	163,478	7	174,416	7
2230	Current tax liabilities (Note 4 and 23)	1,055	-	2,978	-
2280	Lease liabilities - current (Note 4, 14 and 28)	34,197	1	35,368	2
2320	Current portion of long-term borrowings (Note 17 and 29)	59,227	2	46,420	2
2399	Other current liabilities	2,045	-	4,824	-
21XX	Total current liabilities	1,094,582	45	989,402	40
Non-current liabilities
2540	Long-term borrowings (Note 17 and 29)	95,822	4	67,549	3
2570	Deferred tax liabilities (Note 4 and 23)	63,059	3	72,406	3
2580	Lease liabilities - non-current (Note 4, 14 and 28)	131,973	5	198,781	8
2640	Net defined benefit liabilities - non-current (Note 4 and 19)	9,135	-	9,120	-
25XX	Total non-current liabilities	299,989	12	347,856	14
2XXX	Total liabilities	1,394,571	57	1,337,258	54
Equity attributable to owners of the parent company
3110	Ordinary shares	675,000	28	675,000	27
3200	Capital surplus	186,303	8	186,295	8
Retained earnings
3310	Legal reserve	78,409	3	75,259	3
3320	Special reserve	3,526	-	16,229	1
3350	Unappropriated earnings	85,046	4	186,971	7
3400	Other equity	11,579	-	4,609	-
31XX	Total equity attributable to owners of the parent company	1,039,863	43	1,144,363	46
36XX	Non-controlling interests	5,059	-	3,824	-
3XXX	Total equity	1,044,922	43	1,148,187	46
Total liabilities and equity		$ 2,439,493	100	$ 2,485,445	100

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

Winstar Display Co., Ltd. and Subsidiaries
Consolidated statements of comprehensive income
For the years ended December 31, 2025 and 2024
Unit: In thousands of New Taiwan Dollars,
except that Earnings Per Share are stated in NT$

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenue (Note 4, 21 and 28)	$ 2,030,032	100	$ 2,033,923	100
5000	Operating costs (Note 10 and 22)	1,544,542	76	1,542,961	76
5950	Gross profit	485,490	24	490,962	24
	Operating expenses (Note 22)
6100	Selling and marketing expenses	152,790	8	134,463	7
6200	General and Administrative expenses	245,778	12	219,975	11
6300	Research and Development expenses	166,609	8	145,944	7
6450	Expected credit loss (gain) (Note 4 and 9)	( 409 )	-	1,186	-
6000	Total operating expenses	564,768	28	501,568	25
6900	Loss from operations	( 79,278 )	( 4 )	( 10,606 )	( 1 )
	Non-operating income and expenses
7020	Other gains and (losses)	( 21,423 )	( 1 )	( 1,350 )	-
7050	Financial costs (Note 4, 22 and 28)	( 19,187 )	( 1 )	( 15,231 )	( 1 )
7060	Share of profit and loss of associates (Note 4)	( 2,157 )	-	( 2,309 )	-
7100	Interest income	9,949	1	21,754	1
7190	Other income	17,503	1	14,527	1
7230	Net gain (loss) on foreign currency exchange (Note 22)	( 13,921 )	( 1 )	35,598	2
7000	Total non-operating income and expenses	( 29,236 )	( 1 )	52,989	3

(to be continued)

(continued)

Code		2025		2024
		Amount	%	Amount	%
7900	Profit (loss) before income tax	($ 108,514)	( 5 )	$ 42,383	2
7950	Income tax expense (benefit) (Note 4 and 23)	( 11,734 )	-	10,448	-
8200	Net profit (loss) for the year	( 96,780 )	( 5 )	31,935	2
	Other comprehensive income(loss) (Note 4)
8310	Items that will not be reclassified subsequently to profit or loss:
8311	Remeasurement of defined benefit plan (Note 19)	( 385 )	-	1,751	-
8316	Unrealized gain (loss) on investments in equity instruments designated as at fair value through other comprehensive income	12,683	1	( 2,573 )	-
8349	Income tax relating to items that will not be reclassified (Note 23)	77	-	( 350 )	-
8360	Items that may be reclassified subsequently to profit or loss:
8361	Exchange difference on translating foreign operations	( 696 )	-	29,328	1
8399	Income tax related to items that may be reclassified (Note 23)	131	-	( 5,852 )	-
8300	Other comprehensive income for the year, net of income tax	11,810	1	22,304	1
8500	Total comprehensive income (loss) for the year	($ 84,970 )	( 4 )	$ 54,239	3
8600	Net profit (loss) attributable to:
8610	Owners of the company	($ 97,462 )	( 5 )	$ 31,709	2
8620	Non-controlling interests	682	-	226	-
		($ 96,780 )	( 5 )	$ 31,935	2
	Total comprehensive income (loss) attributable to:
8710	Owners of the company	($ 85,608 )	( 4 )	$ 53,948	3
8720	Non-controlling interests	638	-	291	-
8700		($ 84,970 )	( 4 )	$ 54,239	3

(to be continued)

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(continued)

Code		2025		2024
		Amount	%	Amount	%
Earnings (loss) per share (Note 24)
9750	Basic	( $ 1.44 )		$ 0.47
9850	Diluted	( $ 1.44 )		$ 0.47

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

Winstar Display Co., Ltd. and Subsidiaries

Consolidated statements of changes in equity

For the years ended December 31, 2025 and 2024

Unit: NT$ thousands

Equity attributable to owners of the parent company (Note 20)

Code		Ordinary shares	Capital surplus	Retained earnings			Other equity			Total	Non-controlling interests	Total equity
				Legal reserve	Special reserve	Unappropriated earnings	Exchange difference on translating foreign operations	Unrealized gain (loss) of financial assets at fair value through other comprehensive income	Total
A1	Balance on January 1, 2024	$ 675,000	$ 186,294	$ 66,981	$ 4,444	$ 246,414	($ 11,850)	($ 4,379)	$ 1,162,904	$ 2,918	$ 1,165,822
Appropriation of 2023 earnings:
B1	Legal reserve	-	-	8,278	-	( 8,278 )	-	-	-	-	-	-
B5	Cash dividend	-	-	-	-	( 70,875 )	-	-	( 70,875 )	-	( 70,875 )
B17	Special reserve	-	-	-	11,785	( 11,785 )	-	-	-	-	-	-
C17	Other changes in capital surplus	-	1	-	-	-	-	-	1	-	1
D1	Net income for the year ended December 31, 2024	-	-	-	-	31,709	-	-	31,709	226	31,935
D3	Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	1,401	23,411	( 2,573 )	22,239	65	22,504
D5	Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	33,110	23,411	( 2,573 )	53,948	291	54,239
N1	Share-based Payment	-	-	-	-	-	-	-	-	615	615
C7	Changes in equity of associates and joint ventures accounted for using equity method (Note 12)	-	-	-	-	( 1,615 )	-	-	( 1,615 )	-	( 1,615 )
Z1	Balance on December 31, 2024	675,000	186,295	75,259	16,229	186,971	11,561	( 6,952 )	1,144,363	3,824	1,148,187
Appropriation of 2024 earnings:
B1	Legal reserve	-	-	3,150	-	( 3,150 )	-	-	-	-	-	-
B5	Cash dividend	-	-	-	-	( 18,900 )	-	-	( 18,900 )	-	( 18,900 )
B17	Special reserve	-	-	-	( 12,703 )	12,703	-	-	-	-	-	-
C17	Other changes in capital surplus	-	8	-	-	-	-	-	8	-	8
D1	Net loss for the year ended December 31, 2025	-	-	-	-	( 97,462 )	-	-	( 97,462 )	682	( 96,780 )
D3	Other comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	( 308 )	( 521 )	12,683	11,854	( 44 )	11,810
D5	Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	( 97,770 )	( 521 )	12,683	( 85,608 )	638	( 84,970 )
Q1	Disposal of investments in equity instruments designated as at fair value through other comprehensive income	-	-	-	-	5,192	-	( 5,192 )	-	-	-
N1	Share-based Payment	-	-	-	-	-	-	-	-	597	597
Z1	Balance on December 31, 2025	$ 675,000	$ 186,303	$ 78,409	$ 3,526	$ 85,046	$ 11,040	$ 539	$ 1,039,863	$ 5,059	$ 1,044,922

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

Winstar Display Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
For the years ended December 31, 2025 and 2024
Unit: NT$ thousands

Code	Cash flows from operating activities	2025	2024
A10000	Income (Loss) before tax for the year	($ 108,514 )	$ 42,383
A20000	Adjustment for:
A20100	Depreciation expenses	127,685	114,343
A20200	Amortization expenses	3,404	2,398
A20300	Expected credit loss recognized (reversed) on trade receivables	( 409 )	1,186
A20900	Finance costs	19,187	15,231
A21200	Interest income	( 9,949 )	( 21,754 )
A21300	Dividend income	( 19 )	( 55 )
A21900	Compensation cost related to share-based payment	597	615
A22400	Share of profits of associates accounted for using equity method	2,157	2,309
A22500	Loss on disposal of property, plant and equipment	6	30
A23700	Inventory valuation losses	4,373	2,752
A23800	Net loss on disposal of non-financial assets	21,038	-
A24100	Unrealized net gain in foreign currency exchange	( 1,565 )	( 2,119 )
A29900	Gain on lease modification	( 2,222 )	-
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	( 1,644 )	( 2 )
A31150	Trade receivables	( 17,031 )	( 14,077 )
A31180	Other receivables	1,066	( 1,059 )
A31200	Inventory	( 39,518 )	990
A31240	Other current assets	( 17,411 )	( 7,757 )
A32125	Contract liabilities	( 9,618 )	6,005
A32130	Notes payable	( 1,752 )	1,069
A32150	Trade payables	( 2,347 )	1,467
A32180	Other payables	( 6,702 )	4,407
A32230	Other current liabilities	( 2,712 )	( 701 )
A32240	Net defined benefit liabilities	( 370 )	( 384 )
A33000	Cash generated from (used in) operations	( 42,270 )	147,277
A33100	Interest received	9,949	21,754
A33200	Dividend received	19	55
A33300	Interest paid	( 13,142 )	( 11,871 )
A33500	Income tax paid	( 14,436 )	( 23,772 )
AAAA	Net cash generated from (used in) operations activities	( 59,880 )	133,443

(to be continued)

13 -

(continued)

Code		2025	2024
	Cash flows from investing activities
B00010	Payments for financial assets at fair value through other comprehensive income	($ 18,061)	$ -
B00020	Proceeds from disposal of financial assets at fair value through other comprehensive income	21,028	-
B00040	Payments for financial assets at amortized cost	( 68,652)	( 37,228)
B00050	Proceeds from disposal of financial assets at amortized cost	27,675	15,916
B02700	Payments for property, plant and equipment	( 109,918)	( 92,325)
B02800	Proceeds from disposal of property, plant and equipment	38	-
B03700	Increase in refundable deposits	( 731)	( 1,626)
B03800	Decrease in refundable deposits	3,316	1,999
B04500	Payments for intangible assets	( 4,700)	( 10,210)
B07100	Increase in prepayments for equipment	( 152,837)	( 134,613)
BBBB	Net cash used in investing activities	( 302,842)	( 258,087)
	Cash flows from financing activities
C00100	Proceeds from short-term borrowings	794,457	594,739
C00200	Repayments of short-term borrowings	( 650,235)	( 561,477)
C01600	Proceeds from long-term loans	90,000	71,000
C01700	Repayments of long-term borrowings	( 48,920)	( 35,513)
C04020	Repayments of the principal portion of lease liabilities	( 47,647)	( 39,882)
C04500	Dividends paid to owners of the company	( 18,900)	( 70,875)
C09900	Other financing activities	8	1
CCCC	Net cash generated from (used in) financing activities	118,763	( 42,007)
DDDD	Effects of exchange rate changes on the balance of cash held in foreign currencies	( 22,188)	12,458
EEEE	Net decrease in cash and cash equivalents	( 266,147)	( 154,193)
E00100	Cash and cash equivalents at the beginning of the year	700,237	854,430
E00200	Cash and cash equivalents at the end of the year	$ 434,090	$ 700,237

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

Winstar Display Co., Ltd. and Subsidiaries
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(expressed in NTD thousands and foreign currency, unless stated otherwise)

History
Winstar Display Co., Ltd. ("the Company") was established in June 1998. The main business items are the manufacturing, processing, and trading of various displays and modules.

The Company has been listed on the Taiwan Stock Exchange since December 5, 2023.

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

Date and procedures for approval of financial statements
The consolidated financial statements were approved by the Company's board of directors on March 10, 2026.
Application of new, amended and revised standards and interpretations
(1) Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (the "FSC").

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the accounting policies of the Company and its subsidiaries (collectively, the "Group").

15 -

(2) IFRSs endorsed by the FSC for application starting from 2026

New, amended and revised standards and interpretations	Effective date of issuance per the International Accounting Standards Board (IASB) (Note 1)
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
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

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

(3) New IFRSs in issue by IASB but not yet endorsed and issued into effect by the FSC

New, amended and revised standards and interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027(Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above New Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

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

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

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.
17 -

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

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

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

4. Summary of significant accounting policies information

(1) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

(2) Basis of preparation

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

The fair value measurements, which are grouped into Levels 1 to 3

18 -

based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs, are described as follows:

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

(3) Classification of current and non-current assets and liabilities

Current assets include:

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

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting date, and
Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting date.

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

(4) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (the "subsidiaries"). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions or up to the

19 -

effective dates of disposals. Adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. When compiling the consolidated financial statements, all intra-group transactions, account balances, and gains and losses between subsidiaries have been eliminated in full. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

Please refer to Note 11, Table 7 and Table 8 for detailed information on subsidiaries, percentage of ownership and main business.

(5) Foreign currencies

When each individual entity compiles financial statements, transactions in currencies other than the entity's functional currency (i.e., in foreign currency) shall be converted into the functional currency recorded at the exchange rate on the day of the transaction.

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

Foreign currency non-monetary items measured by fair value are translated at the exchange rate on the day when the fair value is determined, and any resulting exchange difference is listed as profit or loss for that year

20 -

except when the change in fair value is recognized in other comprehensive income, in which case the resulting exchange difference is listed in other comprehensive income.

Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

When preparing consolidated financial statements, the assets and liabilities of foreign operations are translated into New Taiwan Dollars at the exchange rate on each balance sheet date (including subsidiaries and associates operating in countries or using currencies that differ from those of the Company). Income and expense items are translated at the current year average exchange rate, and the resulting exchange differences are listed in other comprehensive income, and are respectively attributed to owners of the Company owners and to non-controlling interest.

If the Group disposes of all interests related to a foreign operation, all of the accumulated exchange differences attributable to the owners of the Company related to the foreign operation will be reclassified to profit or loss.

(6) Inventories

Inventories include raw materials, work-in-progress, semi-finished products, and finished goods, which are measured at the lower of cost or net realizable value. The comparison of cost and net realizable value is based on individual items, except for inventories of the same category. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses. Inventory cost is determined using the weighted-average method.

(7) Investments in Associates

An associate is an enterprise that the Group has significant influence over but is not a subsidiary.

The Group adopts the equity method for investments in associates.

Under the equity method, an investment in an associate is initially recognized at cost, and the book value after acquisition will increase or decrease with the Group's share of the associate's profit or loss, other

21 -

comprehensive income, and earnings distributions. In addition, changes in the equity of an associate are recognized based on the shareholding ratio.

The amount of the acquisition cost exceeding the net fair value share of the identifiable assets and liabilities of an associate to which the Group is entitled on the acquisition date is listed as goodwill, which is included in the book value of the investment and cannot be amortized. The excess of the share of the net fair value of the identifiable assets and liabilities of the associate over the acquisition cost is listed as current period profit or loss.

When the Group subscribes for additional new shares of an associate and a joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate and joint venture. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in equity of associates and joint ventures accounted for using the equity method and investments accounted for using the equity method. If the Group's ownership interest is reduced due to the additional subscription of the new shares of the associate and joint venture, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate and joint venture is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

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Profits and losses arising from upstream, downstream, and lateral transactions between the Group and associates shall be recognized in the consolidated financial statements only to the extent that they are not connected to the Group's rights and interests in the associate.

(8) Property, plant and equipment

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

Property, plant and equipment under construction is recognized at cost. Cost includes professional fees and borrowing costs eligible for capitalization. These assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Each material component of property, plant and equipment is depreciated separately on a straight-line basis over its useful life. The Group shall review estimated service life, residual value, and depreciation method at the end of each year at a minimum, and it shall defer the effect of changes in applicable accounting estimates.

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

(9) Investment property

Investment property is held for the purpose of earning rent or capital appreciation or both. Investment property also includes land held for which the future use has not yet been determined.

Self-owned investment property is initially measured at cost (including transaction costs) and subsequently measured at cost less accumulated depreciation and accumulated impairment losses. The Group adopts a straight-line basis for depreciation.

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

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(10) Intangible assets

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

Upon derecognition of intangible assets, the difference between the net disposal price and the asset carrying amount is to be recognized in current year profit or loss.

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

The Group evaluates at each balance sheet date whether there is any evidence that impairment has occurred among property, plant and equipment, right-of-use assets, investment properties, and intangible assets. If any such indication exists, the recoverable amount of the asset is estimated. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit, less amortization or depreciation. A reversal of an impairment loss is recognized in profit or loss.

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(12) Financial instruments

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

On initial recognition of a financial asset or a financial liability, if the financial asset or financial liability is not measured at fair value through profit or loss, it is measured at fair value plus any transaction costs directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial asset

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

Measurement category

The types of financial assets held by the Group are financial assets measured at amortized cost and investments in equity instruments measured at fair value through other comprehensive income.

(1) Financial assets at amortized cost

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

A. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

B. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After the original recognition of financial assets measured at cost after amortization (including cash and cash equivalents, notes receivable measured at amortized cost, accounts receivable, other receivables, and refundable deposits), these are measured at the amortized cost of the gross carrying amount determined using the

25 -

effective interest method less any impairment losses, and any foreign currency exchange gains or losses are recognized in profit or loss.

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

A. Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset.

B. Financial asset that has subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset from the second reporting period after the impairment.

A financial asset is credit impaired when: there are significant financial difficulty of the issuer or borrower or a breach of contract; it is probable that the borrower will enter bankruptcy or other financial reorganization; or the disappearance of an active market for a financial asset due to financial difficulties.

(2) Equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments, which are not held for trading or as contingent consideration recognized by an acquirer in a business combination, as at FVTOCI.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

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

Impairment of Financial assets

The Group measures the impairment loss based on expected credit losses ("ECLs") on financial assets at amortized cost (including trade receivables) on each balance sheet date.

The Group measures a loss allowance at an amount equal to lifetime ECLs on trade receivables. For other financial assets, the Group recognizes the loss allowance for 12 months ECLs if there has not been a significant increase in credit risk since initial recognition or recognizes the loss allowance for the lifetime ECLs if such credit risk has significant increased since initial recognition.

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

For internal credit risk management purposes, the Group determines, without regard to the collateral held, that a default on a financial asset has occurred in the following circumstances:

(1) There is internal or external information indicating that the debtor is incapable of paying off its debts.

(2) Overdue for more than 180 days, unless there is reasonable and corroborative information showing that the delayed default standard is more appropriate.

The impairment loss of all financial assets is based on the reduction of the book value of the contra account.

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Derecognition of financial assets

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

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss is transferred directly to retained earnings, without recycling through profit or loss.

Financial liability

Subsequent measurement

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

Derecognition of financial liabilities

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

(13) Revenue recognition

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

For contracts in which the transfer of goods or services and the receipt of consideration are within one year, the transaction prices of the material finance components will not be adjusted.

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Revenue from sale of goods

Revenue from sales of goods is recognized when the customer obtains control over the asset promised; that is, when the goods are delivered to the designated location and meet the performance obligations. Advance receipts from sales of goods are recognized as contract liabilities before the Group has met its performance obligations.

(14) Leases

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

The Group as lessee

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

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

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

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

29 -

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. If there is a change in the lease term, the Group remeasures the lease liability and adjusts the right-of-use asset accordingly. However, if the carrying amount of the right-of-use asset has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

(15) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the costs of these assets, until the time when substantially all of the activities necessary to prepare the asset for its intended use or sale are complete.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Except for the above, all other borrowing costs are recognized as profit or loss in the year in which they are incurred.

(16) Government Grants

Government subsidies related to income are recognized only when there is reasonable assurance that the Group will comply with the conditions attached to the government subsidies and that the subsidies will be received.

Government subsidies are recognized on a systematic basis in the period in which the related costs for which they are intended to be reimbursed are recognized as expenses by the Group.

Government subsidies are recognized in profit or loss in the period in which they become receivable if they are intended to compensate for expenses or losses already incurred or to provide immediate financial support to the Group and have no future related costs.

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(17) Employee benefits

Short-term employee benefits

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

Post-employment benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including service costs for current period) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense on occurrence. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) constitute shortfalls (surpluses) in defined benefit plan contributions. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

(18) Share-based payment agreement

Employee stock options granted to employees of subsidiaries

Employee stock options granted by the Company to employees of a subsidiary in exchange for the Company's equity instruments are regarded as capital investment in the subsidiary. They are measured based on the fair value of the equity instrument on the grant date, and is recognized as an increase in the carrying amount of the investment in the subsidiary within the vesting period. Furthermore, there is a corresponding adjustment in

31 -

capital reserve-employee stock options.

(19) Taxation

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

Income tax of the current year

Income tax payable (refundable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

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

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

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences. If a temporary difference arises due to the initial recognition of other assets and liabilities, and the transaction does not affect taxable income or accounting profit at that time, it shall not be recognized as deferred income tax assets and liabilities.

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

32 -

the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

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

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

Current and deferred income tax for the year

Current year and deferred income taxes are recognized in profit or loss, with the exception that such items connected to items recognized in other comprehensive income or directly included in equity are to be respectively recognized in other comprehensive income or directly included in equity.

Material accounting judgments and key sources of estimation uncertainty

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

When developing material accounting estimates, the Group considers the

33 -

possible impact of climate change and related government policies and regulations and the economic environment implications of the inflation and interest rate fluctuations and volatility in financial and energy and foreign currency markets and US reciprocal tariffs on the cash flow projection, growth rate, discount rate, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

6. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 569	$ 612
Checking accounts and demand deposits	433,521	689,725
Cash equivalents
Time deposits with banks	-	9,900
	$ 434,090	$ 700,237
Annual interest rates (%)
Demand deposits	0.00-1.45	0.00-1.45
Time deposits with banks	-	1.23

7. Financial assets at amortized cost

	December 31, 2025	December 31, 2024
Current
Pledged time deposits	$ 93,181	$ 79,760
Time deposits with original maturity over three months	21,580	15,206
	$ 114,761	$ 94,966
Non-current
Pledged time deposits	$ 50,806	$ 29,572
Annual interest rates (%)
Pledged time deposits	0.64-4.05	0.51-4.80
Time deposits with original maturity over three months	0.67-3.80	0.67

Please refer to Note 29 for information related to investments in financial assets at amortized cost pledged as security.

8. Financial assets at fair value through other comprehensive income -non-current

Investment in equity instruments	December 31, 2025	December 31, 2024
Domestic listed stocks	$ 18,600	$ 8,884

The Group invests in the above-mentioned corporate equity instruments for medium and long-term strategic purposes, and expects to make profits through long-term investments. Accordingly, the management elected to designate these investments as at financial assets at fair value through other comprehensive income as it believes that recognizing the short-term fluctuations of fair value in profit or loss would not be consistent with the

Group's long-term investment strategy.

Notes receivable and Trade receivable, net

	December 31, 2025	December 31, 2024
Notes receivable
At amortized cost
Gross carrying amount	$ 3,954	$ 2,348
Less: Allowance for impairment loss	-	-
	$ 3,954	$ 2,348
Trade receivables
At amortized cost
Gross carrying amount	$ 257,306	$ 240,355
Less: Allowance for impairment loss	( 971 )	( 1,410 )
	$ 256,335	$ 238,945

(1) Notes receivable

The Group individually reviews the recoverable amount of the notes receivable at the balance sheet date to ensure that an appropriate impairment loss has been recorded for the notes receivable that cannot be recovered. If a note receivable is not cashed out at maturity, it is deemed to be overdue and the full amount of impairment loss is recognized. The aging of notes receivable was as follows:

	December 31, 2025	December 31, 2024
Not past due	$ 3,954	$ 2,348
Overdue	-	-
	$ 3,954	$ 2,348

(2) Trade receivables

The credit period for the Group's sales depends on the sales target, region and conditions. No interest is accrued on accounts receivable. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue receivables. In addition, the Group reviews the recoverable amounts of receivables on a case-by-case basis at the balance sheet date to ensure that unrecoverable receivables have been allocated to the appropriate impairment losses. In this regard, the management believes the Group's credit risk was significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses. Expected lifetime credit losses are calculated using a provision matrix that considers the customer's

past default record and the current financial status and economic conditions in the industry, as well as simultaneously considering GDP forecasts and industry outlook. As the Group's credit loss history shows that there is no significant difference in the loss patterns of different customer groups, the allowance matrix does not further divide the customer groups, and only sets the expected credit loss rate based on the number of days past due on accounts receivable.

If there is evidence that a counterparty is facing serious financial difficulties and the Group cannot reasonably expect a recoverable amount, the Group shall directly write off the relevant accounts receivable while still continuing to pursue recourse activities, and any recovered amount shall be recognized in profit or loss.

The Group measures allowances for uncollectable accounts of accounts receivable in accordance with the provision matrix as follows:

	Not past due	Overdue 1 to 60 days	Overdue 61 to 120 days	Overdue 121 to 180 days	Overdue over 181 days	Total
December 31, 2025
Expected credit loss rate (%)	0.00-0.07	0.00-5.39	2.63-32.15	4.55-31.00	100
Gross carrying amount	$ 220,586	$ 34,846	$ 1,607	$ 36	$ 231	$ 257,306
Loss allowance (Lifetime ECLs)	(45)	(504)	(183)	(8)	(231)	(971)
Amortized cost	$ 220,541	$ 34,342	$ 1,424	$ 28	$-	$ 256,335
	Not past due	Overdue 1 to 60 days	Overdue 61 to 120 days	Overdue 121 to 180 days	Overdue over 181 days	Total
December 31, 2024
Expected credit loss rate (%)	0.00-0.03	0.01-7.90	1.97-25.21	1.97-30.12	100
Gross carrying amount	$ 201,635	$ 36,340	$ 850	$ 827	$ 703	$ 240,355
Loss allowance (Lifetime ECLs)	(45)	(299)	(163)	(200)	(703)	(1,410)
Amortized cost	$ 201,590	$ 36,041	$ 687	$ 627	$-	$ 238,945

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

	2025		2024
Beginning balance	$	1,410	$	303
Impairment loss recognized (reversed)	(	409 )		1,186
Amounts written off	(	20 )	(	88 )
Effect of exchange rate changes	(	10 )		9
Ending balance	$	971	$	1,410

Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 132,890	$ 108,121
Work in progress	67,932	65,099
Semi-finished products	86,971	77,088
Finished good	80,607	75,809
Inventory in transit	66	6,559
	$ 368,466	$ 332,676

The nature of the cost of goods sold related to inventories is as follows:

	2025	2024
Cost of inventory sold	$ 1,507,746	$ 1,516,741
Inventory loss on scrap	20,296	15,829
Inventory write-downs	4,373	2,752
Unallocated manufacturing overhead	12,127	7,639
	$ 1,544,542	$ 1,542,961

Subsidiaries

The entities included in these consolidated financial statements are as follows:

Investor	Subsidiary	Shares (equity) held (%)
		December 31, 2025	December 31, 2024
The Company	RAYSTAR OPTRONICS, INC. (RAYSTAR) (Note 1)	100	100
	WINBEST TECHNOLOGY LLC (WINBEST) (Note 2)	100	100
	WINCAELUM GLOBAL (SAMOA) CO., LTD. (WINCAELUM)	100	100
	WINSTAR DISPLAY (WINSTAR USA)	90	90
	FAIRLINK GROUP LIMITED (FAIRLINK)	100	100
	Winstar Display GmbH (WINSTAR GER) (Note 3)	100	100
WINBEST	WINSTAR DISPLAY (CHANGSHU) CO., LTD (WINSTAR CHANGSHU) (Note 2)	100	100
FAIRLINK	VANSTAR TECHNOLOGY CO., LTD. (VANSTAR)	100	100
WINCAELUM	KENSTAR DISPLAY COMPANY LIMITED (KENSTAR)	100	100

Note 1: In order to increase the working capital of RAYSTAR, the Board of

Directors resolved in May 2024 to approve a cash capital increase of NTD 150,000 thousand, which was fully subscribed by the Company. The Company subsequently remitted the investment amount of NTD 150,000 thousand in November 2024 and has completed the relevant registration of change.

Note 2: In order to increase the working capital of WINSTAR CHANGSHU, the Board of Directors resolved in August 2024 to approve a cash capital increase of USD 1,500 thousand for WINBEST and WINSTAR CHANGSHU, which was fully subscribed by the Company. The Company remitted the investment in two installments of USD 750 thousand each in February 2025 and May 2025, respectively, and has completed the relevant registration of change.

Note 3: The Board of Directors resolved in December 2024 to approve a cash capital increase of EUR 200 thousand for WINSTAR GER, which was fully subscribed by the Company. The Company remitted the investment amount of EUR 200 thousand in January 2025 and has completed the relevant registration of change.

Please refer to Tables 7 and 8 for the information on the main business items of the above-mentioned subsidiaries and the countries of incorporation of the companies.

Investments accounted for using the equity method

Investments in Associates	December 31, 2025		December 31, 2024
Non-listed company	Amount	Shareholding (%)	Amount	Shareholding (%)
Midas Components Ltd. (MIDAS)	$ 6,702	39	$ 8,918	39

In June 2025, MIDAS repurchased treasury shares, resulting in an increase in the Company's ownership percentage from 30% to 39%. This change in the equity of the investment led to an adjustment, reducing retained earnings by NTD 1,615 thousand.

Please refer to Table 7 for the information on the main business items of the above-mentioned associates and the countries of incorporation of the companies.

Investments under the equity method and the Group's share of profit or

38 -

loss and other comprehensive income are recognized based on the financial statements audited by the accountant in the same period.

13. Property, plant and equipment

Self-use	December 31, 2025			December 31, 2024
		$ 524,480			$ 343,583
2025	Building	Leasehold improvements	Machinery Equipment	Office equipment	Other Equipment	Construction in Progress and Equipment under Acceptance	Total
Cost
Beginning balance	$ 114,540	$ 228,533	$ 522,361	$ 44,076	$ 102,190	$ 134,156	$ 1,145,856
Additions	9,057	69,785	9,605	4,053	2,223	10,663	105,386
Disposals	-	-	(17,383)	(1,044)	(1,024)	-	(19,451)
Reclassifications	14,105	26,790	11,760	-	529	104,600	157,784
Effect of exchange rate changes	(1,190)	3,685	(441)	(118)	(338)	-	1,598
Ending balance	$ 136,512	$ 328,793	$ 525,902	$ 46,967	$ 103,580	$ 249,419	$ 1,391,173
Accumulated depreciation and impairment
Beginning balance	$ 49,320	$ 167,895	$ 415,972	$ 28,984	$ 84,074	$ 56,028	$ 802,273
Depreciation expenses	3,842	29,855	41,212	4,466	4,846	-	84,221
Disposals	-	-	(17,380)	(1,044)	(983)	-	(19,407)
Reclassifications	(529)	-	-	88	441	-	-
Effect of exchange rate changes	(197)	508	(416)	(90)	(199)	-	(394)
Ending balance	$ 52,436	$ 198,258	$ 439,388	$ 32,404	$ 88,179	$ 56,028	$ 866,693
Closing net amount	$ 84,076	$ 130,535	$ 86,514	$ 14,563	$ 15,401	$ 193,391	$ 524,480
2024
Cost
Beginning balance	$ 108,766	$ 211,360	$ 501,209	$ 34,648	$ 95,007	$ 74,927	$ 1,025,917
Additions	-	862	15,623	12,374	8,704	55,655	93,218
Disposals	-	-	(2,755)	(4,041)	(2,895)	-	(9,691)
Reclassifications	-	15,873	4,898	834	99	3,574	25,278
Effect of exchange rate changes	5,774	438	3,386	261	1,275	-	11,134
Ending balance	$ 114,540	$ 228,533	$ 522,361	$ 44,076	$ 102,190	$ 134,156	$ 1,145,856
Accumulated depreciation and impairment
Beginning balance	$ 43,292	$ 146,319	$ 371,844	$ 30,329	$ 81,915	$ 56,028	$ 729,727
Depreciation expenses	4,024	21,554	45,000	2,516	4,200	-	77,294
Disposals	-	-	(2,754)	(4,038)	(2,869)	-	(9,661)
Effect of exchange rate changes	2,004	22	1,882	177	828	-	4,913
Ending balance	$ 49,320	$ 167,895	$ 415,972	$ 28,984	$ 84,074	$ 56,028	$ 802,273
Closing net amount	$ 65,220	$ 60,638	$ 106,389	$ 15,092	$ 18,116	$ 78,128	$ 343,583

There was no recognition or reverse any impairment losses of the Group's in 2025 and 2024.

The Group's property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Building
Plants	20~40 years
Others	5~10 years
Leasehold improvements	2~10 years
Machinery Equipment	2~20 years
Office equipment	2~20 years
Other Equipment	2~20 years

Please refer to Note 29 for the amount of property, plant and equipment pledged to secure borrowings.

14. Lease arrangements

(1) Right-of-use assets

	December 31, 2025	December 31, 2024
Carrying Amount
Land	$ 27,492	$ 28,931
Buildings	162,722	229,916
Transportation Equipment	-	276
	$ 190,214	$ 259,123
	2025	2024
Additions to right-of-use assets	$ 14,346	$ 141,635
Depreciation expenses for right-of-use assets
Land	$ 1,004	$ 1,033
Buildings	41,905	35,074
Transportation Equipment	276	662
	$ 43,185	$ 36,769

Except for the above additions and depreciation expenses recognized, there was no material sublease or impairment of the Group's right-of-use assets in 2025 and 2024. Please refer to Note 29 for the amount of right of use assets pledged as collateral for borrowings.

(2) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying Amount
Current	$ 34,197	$ 35,368
Non-current	$ 131,973	$ 198,781

The discount rate (%) of lease liabilities is as follows:

	December 31, 2025	December 31, 2024
Land	2.65	2.65
Buildings	2.49-3.72	2.49-3.76
Transportation Equipment	-	2.81

(3) Important leasing activities and terms

In 2006, WINSTAR CHANGSHU acquired land use rights in a Taiwan-funded industrial park in Xinzhuang Town, Changshu City, Jiangsu Province, China, with a useful life of 45 years. In 2013, WINSTAR CHANGSHU acquired land use rights in Dalingshan Town, Dongguan City, Guangdong Province, China, with a useful life of 35 years. The purpose of the land is for the construction of production plants, offices, and employee

dormitories. According to local laws and regulations, the company is entitled to the right to allocate, transfer, lease and mortgage the land use rights within the useful life.

KENSTAR acquired the right to use land in Bago, Yangon, Myanmar, in 2016 with a validity period of 30 years. The land purpose is for the construction of production plants, offices, and employee dormitories. Due to Myanmar's land policy restrictions, it was not possible to register the land in the name of KENSTAR. Therefore, the land use rights were registered in the name of a local employee, with whom a land registration contract was signed. The land use rights may not be bought, sold, transferred, or encumbered without consent.

The Group also leases certain land and buildings for plants and offices, with lease terms of 1 to 10 years. Upon termination of the lease terms, there are no preferential rights to purchase the leased property; and it is agreed that the subject of the lease, in whole or in part, may not be subleased or transferred without the consent of the lessor.

(4) Other lease information

	2025		2024
Expenses relating to short-term leases	$	746	$	648
Expenses relating to low-value asset leases	$	397	$	259
Total cash outflow for leases	$	55,975	$	46,047

The Group has elected to apply the recognition exemption for leases of buildings and office equipment that qualify as short-term leases and low-value asset leases, and does not recognize the related right-of-use assets and lease liabilities for these leases.

41 -

Investment properties

2025	Land	Buildings	Total
Cost
Beginning balance	$ 79,346	$ 5,589	$ 84,935
Ending balance	$ 79,346	$ 5,589	$ 84,935
Accumulated depreciation
Beginning balance	$ -	$ 1,956	$ 1,956
Depreciation expenses	-	279	279
Ending balance	$ -	$ 2,235	$ 2,235
Closing net amount	$ 79,346	$ 3,354	$ 3,354
2024
Cost
Beginning balance	$ 79,346	$ 5,589	$ 84,935
Ending balance	$ 79,346	$ 5,589	$ 84,935
Accumulated depreciation
Beginning balance	$ -	$ 1,676	$ 1,676
Depreciation expenses	-	280	280
Ending balance	$ -	$ 1,956	$ 1,956
Closing net amount	$ 79,346	$ 3,633	$ 82,979

Except for depreciation expenses recognized, there were no material additions, disposals, or impairments of the Group's investment properties in 2025 and 2024.

The Company's property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings

20 years

In response to future operational expansion needs, the Company and a non-related party purchased land in Xiuya Section, Daya District, Taichung City in 2013. Since the acquired land was farmland, and due to legal restrictions the transfers could not be made under the name of the Company, the land was registered separately with the Company's Chairman Yu-Pin Liao and Director Yao-Wen Tsai and contracts have been signed with them; no rights may be transferred or established without the consent of the Company. The fair value of the investment property was not appraised by an independent appraiser but was determined by management of the Company reference to the most recent transaction prices of similar properties in the vicinity. The fair value of the investment property as of December 31, 2025 and 2024 was determined to be NTD 127,558 thousand and NTD 122,123 thousand.

Please refer to Note 29 for the amount of investment property pledged as collateral for borrowings.

43 -

16. Other assets

	December 31, 2025	December 31, 2024
Current
Prepaid expenses	$ 15,393	$ 16,697
Overpaid sales tax	31,157	15,584
Prepayment for purchase	8,306	7,760
Supplies inventory	12,571	7,192
Others	3,008	5,729
	$ 70,435	$ 52,962
Non-current
Prepayments for equipment	$ 195,431	$ 225,226
Refundable deposits	6,704	9,329
Others	5,328	1,365
	$ 207,463	$ 235,920

17. Borrowings

(1) Short-term borrowings

	December 31, 2025	December 31, 2024
Secured borrowings	$ 493,861	$ 371,875
Annual interest rates (%)	2.22-3.35	2.22-3.80

The secured borrowings referred to above are secured by the Group's assets (see Note 29) and with senior management jointly and severally assuming liability.

(2) Long-term borrowings

	December 31, 2025	December 31, 2024
Secured borrowings	$ 155,049	$ 113,969
Less: Current portions	( 59,227 )	( 46,420 )
Long-term borrowings	$ 95,822	$ 67,549
Annual interest rates (%)	1.78-3.04	2.22-3.04
Maturity	115.3-121.12	114.7-118.6

The secured borrowings referred to above are secured by the Group's assets (see Note 29) and with senior management jointly and severally assuming liability.

The Company has entered into a credit agreement with Taipei Fubon Commercial Bank. According to the provisions of the credit agreement, the Debt ratio (Total Liabilities/Total Equity) shall not be higher than 220% that should be complied with in the annual consolidated financial statements during the credit period after drawdown.

All financial ratio items of the Group are in compliance with the contractual requirements.

The RAYSTAR has entered into a credit agreement with CTBC Bank. According to the provisions of the credit agreement, the financial ratios that should be complied with in the RAYSTAR semi-annual financial statements during the credit period after drawdown are as follows:

Current ratio (Total Current Assets/ Current Liabilities) shall not be higher than 100%;
Debt ratio (Total Liabilities/Total Equity) shall not be higher than 150%;
Interest Coverage Ratio [(Profit before income tax + Interest Expense + Depreciation expense + Amortization expense) / (Outstanding Principal Balance due within one year under this agreement + Interest Expense)] shall not be less 1 time.

All financial ratio items of the RAYSTAR are in compliance with the contractual requirements.

18. Other payables

	December 31, 2025	December 31, 2024
Salaries payable	$ 77,804	$ 71,946
Pension and insurance premiums payable	31,934	37,735
Equipment payable	2,352	6,884
Remuneration payable to employees and directors	-	3,400
Others	51,388	54,451
	$ 163,478	$ 174,416

19. Retirement benefit plans

(1) Defined contribution plan

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

Employees of subsidiaries in mainland China participate in social insurance plans managed and coordinated by local government agencies. The pension plan is a defined-contribution plan that pays the pension insurance premiums for the government-managed social insurance plan.

FAIRLINK, WINBEST, and WINCAELUM are holding companies and therefore do not have pension plans and systems in place.

KENSTAR, WINSTAR USA, and WINSTAR GER do not have pension plans and systems in place.

(2) Defined benefit plan

The defined benefit plans adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Company has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group's defined benefit plans were as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 20,145	$ 19,994
Fair value of plan assets	( 11,010 )	( 10,874 )
Net defined benefit liabilities	$ 9,135	$ 9,120

Movements in net defined benefit liabilities were as follows:

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liabilities
January 1, 2024	$ 21,278	($ 10,023)	$ 11,255
Interest expense (income)	266	( 129 )	137
Recognized in profit or loss	266	( 129 )	137
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	( 865 )	( 865 )
Actuarial loss (gain)
- changes in financial assumption	( 511 )	-	( 511 )
- experience adjustments	( 375 )	-	( 375 )
Recognized in other comprehensive income	( 886 )	( 865 )	( 1,751 )
Contributions from employer	-	( 521 )	( 521 )
Benefits paid	( 664 )	664	-
December 31, 2024	19,994	( 10,874 )	9,120
Interest expense (income)	300	( 167 )	133
Recognized in profit or loss	300	( 167 )	133
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	( 765 )	( 765 )
Actuarial gain
- changes in financial assumption	236	-	236
- experience adjustments	914	-	914
Recognized in other comprehensive income	1,150	( 765 )	385
Contributions from employer	-	( 503 )	( 503 )
Benefits paid	( 1,299 )	1,299	-
December 31, 2025	$ 20,145	($ 11,010 )	$ 9,135

Through the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
Interest rate risk: A decrease in government bond and corporate bond interest rates would increase the present value of defined benefit obligations, while the return on debt investments of plan assets would also increase accordingly and the impact of these two factors on net

defined benefit liabilities would have a partial offsetting effect.

Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries.

The significant assumptions on the valuation date were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.38%	1.50%
Expected growth rate of salary	3.25%	3.25%

If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

	December 31, 2025	December 31, 2024
Discount rate
0.25% increase	($ 469)	($ 495)
0.25% decrease	$ 483	$ 511
Expected growth rate of salary
0.25% increase	$ 466	$ 494
0.25% decrease	($ 455)	($ 481)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31, 2025	December 31, 2024
The expected contributions to the plan for the next year	$ 482	$ 523
The average duration of the defined benefit obligation	9.4 years	10.1 years

48 -

20. Equity

(1) Ordinary shares

	December 31, 2025	December 31, 2024
Number of shares authorized (in thousand)	80,000	80,000
Shares authorized	$ 800,000	$ 800,000
Number of shares issued and fully paid (in thousand)	67,500	67,500
Shares issued	$ 675,000	$ 675,000

(2) Capital surplus

	December 31, 2025	December 31, 2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital(Note)
Stock premium for common shares	$ 152,938	$ 152,938
Arising from the difference between consideration received or paid and the carrying amount of the subsidiaries' net assets during actual disposal or acquisition	22,112	22,112
Arising from treasury share transactions	11,244	11,244
May only be used to offset a deficit
Gain on the exercise of the disgorgement	9	1
	$ 186,303	$ 186,295

Note : Such capital reserves can be used to make up for losses, and can also be used for issuance of cash dividends or transfers of share capital when the Company has no losses. However, transfers of share capital are limited to a certain percentage of paid-in share capital each year.

(3) Retained earnings and dividend policy

In accordance with the dividend policy stipulated by the Company's Articles of Incorporation, if there is a surplus in the annual final accounts, taxes should first be paid and accumulated losses covered. Thereupon, another 10% should be set aside as legal reserve. However, this does not apply when legal has reached the amount of paid-in capital. The remainder shall be set aside or reversed as special reserve in accordance with laws and regulations. If there is any remaining balance, then it shall be combined with cumulative Unappropriated earnings and an earnings distribution proposal drafted by the Board of Directors for submission to the shareholders' meeting for resolution on the distribution of shareholder dividends.

The Company's dividend policy adopts the principle of stability and balance, and takes into account factors such as profitability, financial structure, and future development. The Company appropriates 10% to 90% of the distributable earnings of the current year as dividends, of which cash dividends shall not be less than 10% of the total dividend. If the dividend per share is less than NTD 0.1, the Board of Directors may propose to withhold the distribution, and the resolution will be submitted to the shareholders' meeting.

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

Items referred to under Rule No. 1090150022 issued by the FSC and the directive titled "Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs" should be appropriated to or reversed from a special reserve by the Company. Any subsequent reversal of deductions from stockholders' equity may be distributed as earnings to the extent of the reversal.

49 -

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

	2024		2023
Legal reserve	$	3,150	$	8,278
Special reserve	(	12,703 )		11,785
Cash dividends		18,900		70,875
Cash dividends per share (NTD)		0.28		1.05

At the Board of Directors' meeting in March 2026, the Company proposed not to distribute dividends for 2025 due to the net loss after tax for the year.

The appropriation of earnings for 2025 are subject to the resolution of the shareholders in their meeting to be held in June 2026.

(4) Special reserve

When the Company initially adopted IFRS accounting standards, the amount of NTD 3,526 thousand transferred from accumulated translation adjustments to retained earnings was set aside as a special reserve of the same amount. When the relevant assets are subsequently used, disposed of, or reclassified, the assigned surplus must be reversed in proportion to the original provision for special reserve.

21. Revenue

	2025		2024
Revenue from contracts with customers
Revenue from sale of goods	$ 2,030,032		$ 2,033,923
	December 31, 2025	December 31, 2024	January 1, 2024
Contract balance
Notes and accounts receivable	$ 260,289	$ 241,293	$ 208,623
Contract liabilities
Sales of goods	$ 33,941	$ 43,828	$ 37,523
Others	38,078	38,078	38,078
	$ 72,019	$ 81,906	$ 75,601

The change in contract liabilities mainly comes from the difference between the time when performance obligations are met and the time when customers make payment. The recognized revenue amounts from contract liabilities at the beginning of the year in 2025 and 2024 were NTD 37,691 thousand and NTD 28,825 thousand, respectively.

Please refer to Note 33 for the breakdown of revenue.

22. Comprehensive income for the year

(1) Employee benefits, depreciation, and amortization expenses

Nature	Recognized in operating costs	Recognized in operating expenses	Total
2025
Employee benefit expenses
Salaries	$ 191,808	$ 306,977	$ 498,785
Post-employment benefits
Defined contribution plan	12,759	17,083	29,842
Defined benefit plan	-	133	133
Share-based Payment
Equity delivery	-	597	597
Others employee benefits	39,957	49,363	89,320
Depreciation expenses	101,416	26,269	127,685
2024
Employee benefit expenses
Salaries	$ 188,478	$ 276,912	$ 465,390
Post-employment benefits
Defined contribution plan	11,478	14,519	25,997
Defined benefit plan	-	137	137
Share-based Payment
Equity delivery	-	615	615
Others employee benefits	35,874	43,874	79,748
Depreciation expenses	95,455	18,888	114,343

(2) Amortization expenses

	2025	2024
An analysis of amortization by function
Operating costs	$ 111	$ 77
General and Administrative expenses	2,247	1,699
Research and Development expenses	1,046	622
	$ 3,404	$ 2,398

(3) Compensation of employees and remuneration of directors

In accordance with the Articles of Incorporation, the Company allocates no less than 1% and no more than 5% of the profits before tax of the current year as the compensation of employees and the remuneration of directors, respectively. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their June 2025 regular meeting. The amendments explicitly stipulate the allocation of 15% of the compensation of employees as compensation distributions for non-executive employees. As the Company reported a net loss before tax for the year 2025, no provisions were made for employees' and directors' remuneration; and for estimated the compensation of employees (including non-executive employees) and the remuneration of directors for 2024, the Board of Directors' resolutions in March 2025 was as follows:

Cash	2025		2024
	Estimated proportions	Amount	Estimated proportions	Amount
Compensation of employees	-	$ -	4.93%	$ 1,900
Remuneration of directors	-	-	3.89%	1,500

If there are any further changes in the amounts after the publication of the annual consolidated financial statements, then they will be treated as changes in accounting estimates and adjusted and recorded in the following year.

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

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

52 -

(4) Finance costs

	2025	2024
Interest on bank loans	$ 13,350	$ 11,560
Interest on lease liabilities	7,185	5,258
Less: Amounts included in the cost of qualifying assets	( 1,348 )	( 1,587 )
	$ 19,187	$ 15,231

Information on interest capitalization is as follows:

	2025	2024
Amount of capitalized interest	$ 1,348	$ 1,587
Interest capitalization rate (%)	2.20-2.93	1.10-3.43

(5) Foreign exchange gain or loss

	2025	2024
Gross gains on foreign exchange	$ 53,626	$ 95,460
Gross losses on foreign exchange	( 67,547 )	( 59,862 )
Net profit (loss)	($ 13,921 )	$ 35,598

Taxation

(1) Major components of income tax recognized in profit or loss are as follows:

	2025	2024
Current income tax
In respect of the current year	$ 6,558	$ 9,229
Income tax on unappropriated earnings	1,107	-
Adjustment for prior year	1,913	( 1,928 )
	9,578	7,301
Deferred tax
In respect of the current year	( 21,181 )	3,205
Adjustment for prior year	( 131 )	( 58 )
	( 21,312 )	3,147
Income tax recognized in profit or loss	($ 11,734 )	$ 10,448

A reconciliation of accounting profit and income tax recognized in profit or loss is as follows:

	2025	2024
Income tax expense (benefit) calculated at the statutory rate	($ 30,757 )	$ 10,317
Nondeductible expenses in determining taxable income	27	1,508
Tax-exempt income	( 341 )	( 29 )
Unrecognized loss carryforwards	12,165	4,744
Income tax on unappropriated earnings	1,107	-
Investment credits used in the current year	-	( 4,106 )
Adjustment in the current year for income tax of prior years	1,782	( 1,986 )
Nondeductible tax expenses in determining taxable income	4,283	-
Income tax recognized in profit or loss	($ 11,734 )	$ 10,448

(2) Changes in deferred tax assets and liabilities

2025	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Effect of exchange rate changes	Ending balance
Deferred tax assets
Temporary differences
Investments accounted for using the equity method	$ 35,468	$ 12,116	$ -	$ -	$ 47,584
Inventory valuation losses	13,551	340	-	14	13,905
Impairment loss on property, plant and equipment	11,206	-	-	-	11,206
Other payables	8,496	( 905)	-	( 1 )	7,590
Others	4,879	545	77	13	5,514
	73,600	12,096	77	26	85,799
Loss carryforwards	6,828	-	-	-	6,828
	$ 80,428	$ 12,096	$ 77	$ 26	$ 92,627
Deferred tax liabilities
Temporary differences
Investments accounted for using the equity method	$ 68,215	($ 8,892)	$ -	$ -	$ 59,323
Others	4,191	( 324)	( 131)	-	3,736
	$ 72,406	($ 9,216)	($ 131)	$ -	$ 63,059
2024
Deferred tax assets
Temporary differences
Investments accounted for using the equity method	$ 31,725	$ 3,743	$ -	$ -	$ 35,468
Inventory valuation losses	13,539	( 195)	-	207	13,551
Impairment loss on property, plant and equipment	11,206	-	-	-	11,206
Other payables	7,806	378	-	312	8,496
Others	8,053	( 2,869)	( 350)	45	4,879
	72,329	1,057	( 350)	564	73,600
Loss carryforwards	6,828	-	-	-	6,828
	$ 79,157	$ 1,057	($ 350)	$ 564	$ 80,428
Deferred tax liabilities
Temporary differences
Investments accounted for using the equity method	$ 62,350	$ 5,865	$ -	$ -	$ 68,215
Others	-	( 1,661)	5,852	-	4,191
	$ 62,350	$ 4,204	$ 5,852	$ -	$ 72,406

54 -

(3) Unused loss carryforwards for which no deferred tax assets have been recognized in the consolidated balance sheets

	December 31, 2025	December 31, 2024
Loss carryforwards
Expiring in 2030	$ 73,024	$ 73,024
Expiring in 2033	56,433	56,433
Expiring in 2034	10,863	11,950
Expiring in 2035	37,301	-
	$ 177,621	$ 141,407

(4) Information on unused loss carryforwards

As of December 31, 2025, information on loss carryforwards is as follows:

Unused balance	Expiry year
$ 31,154	2029
76,010	2030
56,433	2033
10,863	2034
38,953	2035
$ 213,413

(5) Income tax assessments

The income tax returns of the Company and RAYSTAR of the Group's subsidiaries located in Taiwan through 2023 have been assessed by the tax authorities.

Earnings (loss) per share

	Net profit (loss)	Number of shares (in thousand shares)	Earnings (loss) per share (NTD)
2025
Basic loss per share
Net loss attributable to owners of the parent company	( $ 97,462 )	67,500	( $ 1.44 )
2024
Basic earnings per share
Net profit attributable to owners of the parent company	$ 31,709	67,500	$ 0.47
Effect of potentially dilutive ordinary shares
Compensation of employees	-	108
Diluted earnings per share
Net profit for the period attributable to owners of the Company plus effect of potentially dilutive ordinary shares	$ 31,709	67,608	$ 0.47

The Group may settle compensation or bonuses paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation or bonus will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year. As the Company reported a net loss after tax for the year 2025, the potential ordinary shares arising from employee compensation would have an anti-dilutive effect and have therefore been excluded from the calculation of earnings per share.

25. Cash flow information

(1) Non-cash transactions

In addition to those disclosures made in other notes, the Group conducted the following non-cash investment and financing activities in 2025 and 2024:

Cash paid by the Group for the purchase of property, plant and equipment in 2025 and 2024, respectively, was as follows:

	2025	2024
Increase in property, plant and equipment	$ 105,386	$ 93,218
Net change in equipment payable	4,532	( 893 )
Amount of cash paid	$ 109,918	$ 92,325

(2) Changes in liabilities from financing activities

2025	Beginning balance	Cash flows from	Non-cash changes				Ending balance
			New leases	Changes in foreign exchange rates	Finance costs	Lease modification
Short-term borrowings	$ 371,875	$ 144,222	$ -	($ 22,236)	$ -	$ -	$ 493,861
Long-term borrowings	113,969	41,080	-	-	-	-	155,049
Lease liabilities	234,149	( 47,647)	14,346	( 1,557)	7,185	( 40,306)	166,170
	$ 719,993	$ 137,655	$ 14,346	($ 23,793)	$ 7,185	($ 40,306)	$ 815,080
2024
Short-term borrowings	$ 336,786	$ 33,262	$ -	$ 1,827	$ -	$ -	$ 371,875
Long-term borrowings	78,482	35,487	-	-	-	-	113,969
Lease liabilities	126,764	( 39,882)	141,635	374	5,258	-	234,149
	$ 542,032	$ 28,867	$ 141,635	$ 2,201	$ 5,258	$ -	$ 719,993

57 -
Capital management

The Group conducts capital management to ensure that each company in the Group can continue to operate and maximize shareholder returns by optimizing the balance of debt and equity.

The capital structure of the Group consists of the net debt (i.e., borrowings less cash and cash equivalents) and equity (i.e., ordinary share capital, capital reserves, retained earnings, and total other equity interest) of the Group.

The senior management of the Group regularly re-examines the capital structure of the Group, including consideration of the cost of each type of capital and the associated risk. Based on recommendations of the key management, the Group may balance its overall capital structure by the means of dividend payment, issuance of new shares, shares buyback, issuance of new debts or repayment of existing debts.

Financial instruments

(1) Information on fair value

Financial instruments measured at fair value - Financial instruments measured at fair value on a recurring basis

Fair value hierarchy

The following table provides an analysis of the financial instruments measured at fair value after initial recognition. The measurement is based on the extent to which the fair value is observable, and is divided into Levels 1 to 3.

Fair value hierarchy	Level 1	Level 2	Level 3	Total
December 31, 2025
Financial assets at fair value through other comprehensive income
Domestic listed stocks	$ 18,600	$ -	$ -	$ 18,600
December 31, 2024
Financial assets at fair value through other comprehensive income
Domestic listed stocks	$ 8,884	$ -	$ -	$ 8,884

The Group made no transfers between Level 1 and Level 2 measurements at fair value in 2025 and 2024.

Financial instruments not measured at fair value

The fair value of financial assets and financial liabilities is determined by the following means:

(1) For total investment in financial instruments such as cash and cash equivalents, financial assets measured at amortized cost, notes receivable and payable, other receivables, refundable deposits, short-term borrowings, other payables, and refundable deposits where date of expiration or future payment price is similar to the carrying amount, the carrying amount on the consolidated balance sheet date is used to estimate the fair value.

(2) The fair value of long-term borrowings (including maturities within one year) is estimated based on the discounted value of their future cash flows. The Group's long-term borrowings are at floating interest rates, and the carrying value constitutes the fair value.

(2) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial asset
At amortized cost (Note 1)	$ 869,596	$ 1,078,790
Financial assets at fair value through other comprehensive income	18,600	8,884
Financial liability
At amortized cost (Note 2)	971,350	818,794

Note 1: Balances include financial assets measured at cost after amortization such as cash and cash equivalents, financial assets measured at cost after amortization, notes receivable and accounts receivable, other receivables, and refundable deposits.

Note 2: Balances constitute measured at amortized cost including short-term borrowings, notes payable, trade payable, other payables, and long-term borrowings.

(3) Financial risk management objectives and policies

The Group's primary financial instruments include cash and cash equivalents, equity investments, accounts receivable, trade payable,

58 -

borrowings, and lease liabilities. The Financial Management Department of the Group provides services for each business unit, coordinates domestic and international financial market operations, and monitors and manages financial risks related to the operations of the Group by analyzing internal risk reports according to the degree and breadth of the risk. Such risks include market risk, credit risk, and liquidity risk.

Market risk

The main financial risks borne by the Group due to its operating activities are the risk from foreign currency exchange rate change and interest rate change risk.

There has been no change to the Group's exposure to market risks and the management and measurement of such exposures.

(1) Foreign currency risk

The Group engages in sales and purchase transactions denominated in foreign currencies, resulting in exchange rate risk.

The carrying amounts of the Group's monetary assets and monetary liabilities denominated in nonfunctional currencies (including the monetary items denominated in nonfunctional currencies eliminated in the consolidated financial statements) on the balance sheet date are provided in Note 31.

Sensitivity analysis

The Group was mainly exposed to the risk of exchange rate fluctuation of the US Dollar.

The following table shows a sensitivity analysis of the Group when the exchange rate of the functional currency changes by 1% against each relevant foreign currency. 1% is the sensitivity ratio used by the Group to report exchange rate risk to senior management, and also represents the management's assessment of the reasonable possible range of changes in foreign currency exchange rate. The sensitivity analysis includes only the outstanding monetary items in foreign currencies, and the

59 -

translation at the end of the year is adjusted based on a 1% change in exchange rates. The positive numbers in the table below represent the amounts that would increase (decrease) net profit (loss) before tax when the functional currency appreciates by 1% relative to each relevant currency; when the functional currency depreciates by 1% against each relevant foreign currency, its impact on net profit (loss) before tax will be a negative number of the same amount. The impact of exchange rate changes on profit and loss is as follows:

Currency type	2025	2024
USD	$ 3,769	$ 6,820

Management believes that the sensitivity analysis cannot represent the inherent risk of exchange rates, as the exposure to the foreign currency risk at the balance sheet date cannot reflect the risk exposure during the year. The Group's increased sensitivity to exchange rate fluctuations this year was primarily due to a rise in accounts receivable denominated in US dollars.

(2) Interest rate risk

The Group's interest rate risk mainly arises from fixed and floating interest rate bank deposits, cash equivalents, financial assets measured at cost after amortization, bank loans, and lease liabilities, which generate interest rate exposure.

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

	December 31, 2025	December 31, 2024
Fair value interest rate risk
Financial asset	$ 104,132	$ 79,179
Financial liability	166,170	234,149
Cash flow interest rate risk
Financial asset	477,299	718,863
Financial liability	648,910	485,844

61 -

Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk exposure of the non-derivative instruments at the balance sheet date. The rate of change used in the Group's internal reporting of interest rates to senior management is 25 basis points, which also represents management's assessment of the reasonably possible range of interest rates.

If interest rates had changed, and all other variables remained unchanged, the Group's net profit (loss) before tax for 2025 and 2024 would have changed by NTD (429) thousand and NTD 583 thousand, respectively. The Group's exposure to interest rate risk increased during the current period, primarily attributable to an increase in floating-rate bank loans.

Credit risk

Credit risk refers to the risk that a counterparty defaults in its contractual obligations and causes financial losses to the Group. As of the balance sheet date, the maximum credit risk exposures of the Group that may cause financial losses due to the performance failure of the counterparty and the financial guarantee provided by the Group are mainly derived from the book value of financial assets recognized in the consolidated balance sheet.

The Group uses other publicly available financial information and mutual transaction records to rate major customers, continuously monitors credit risk exposure and the credit ratings of counterparties, and distributes the total transaction amount among customers with qualified credit ratings. Credit risk is controlled through the counterparty's credit limits that are reviewed and approved by the management each year.

Liquidity risk

The Group has established an appropriate liquidity risk management framework in order to respond to the needs for funding and liquidity management in the short, medium and long term. The Group manages liquidity risk by maintaining bank financing facilities, continuously monitoring expected and actual cash flows, and matching the maturities of financial assets and liabilities. As of December 31, 2025 and 2024, the unused bank facilities of the Group totaled NTD 603,651 thousand and NTD 471,177 thousand, respectively.

The following liquidity and interest rate risk tables illustrate the remaining contractual maturities of the Group's non-derivative financial liabilities with agreed repayment periods. The tables are based on the earliest possible dates on which the Group may be required to repay and are prepared based on the undiscounted cash flows of financial liabilities, which includes cash flows of interest and principal.

Non derivative financial liabilities	Within 3 months	3 months~1 year	1~5 years	5~10 years
December 31, 2025
Non-interest bearing liabilities	$ 322,440	$ -	$ -	$ -
Lease liabilities	9,848	29,545	92,240	61,253
Floating rate instruments	149,574	403,514	95,822	-
	$ 481,862	$ 433,059	$ 188,062	$ 61,253
December 31, 2024
Non-interest bearing liabilities	$ 332,950	$ -	$ -	$ -
Lease liabilities	11,499	34,064	147,597	77,274
Floating rate instruments	18,164	400,131	67,549	-
	$ 362,613	$ 434,195	$ 215,146	$ 77,274

(4) Transfers of financial assets

In 2025 and 2024, the Group transferred some of the bank's acceptance receivables that are not receivable by banks with higher credit ratings in mainland China to the supplier for payment amounts of NTD 4,394 thousand and NTD 3,918 thousand, respectively. According to the contract, if the bank's acceptance receivable cannot be collected upon expiry, the transferee has the right to request the Group to pay the outstanding balance. Therefore, the Group did not transfer the material risk and return of the bank

62 -

acceptance receivable, and the Group continued to recognize the bank acceptance receivable.

As of December 31, 2025 and 2024, the carrying amounts of transferred bank acceptance notes receivable that had not been derecognized were NTD 382 thousand and NTD 238 thousand, respectively; and the carrying amounts of relevant liabilities were NTD 382 thousand and NTD 238 thousand, respectively.

In 2025 and 2024, the Group endorsed and transferred some of the bank acceptance notes receivable accepted by banks with higher credit ratings in mainland China to suppliers to pay trade payable. As substantially all the risks and rewards of these notes have been transferred, the Group excludes the transferred bank acceptance notes receivable and corresponding trade payable. However, if the bank acceptances that have been derecognized are not cashed when they are due, the supplier still has the right to require the Group to pay off, so the Group continues to participate in these notes.

The maximum loss exposure amount for the Group's continued participation in the delisted bank acceptance notes is the face amount of the bank acceptance notes that have been transferred but have not yet matured. As of December 31, 2025 and December 31, 2024, they were NTD 5,615 thousand and NTD 1,492 thousand, respectively. The respective notes will mature within 1 to 4 months after the balance sheet dates. Considering the credit risk of the derecognized bank acceptances, the Group has assessed that the fair value of its continuing participation is not material.

In 2025 and 2024, the Group did not recognize any gain or loss on the transfer of bank acceptances receivable, and no profit or loss has been recognized during the current year and accumulated by these notes from their continued participation.

63 -

64 -
Transactions with related parties

Consolidated transactions, account balances, income, and expenses have been eliminated upon consolidation and are not disclosed in these Notes. In addition to those disclosed in other Notes, transactions with other related parties are as follows:

(1) Related parties and relationship

Related parties	Relationship with the Group
MIDAS	Associate
Yu-Pin Liao	Senior management (Chairman)
Yao-Wen Tsai	Senior management (directors)
Szu-Chun Sung	Senior management (directors)
I-Feng Liao	Other related parties (first-degree relatives of the Chairman)

(2) Operating revenue

Related parties category/name	2025	2024
Associate
MIDAS	$ 14,932	$ 12,684

The finished products sold by the Group to associates are individually priced based on product differences and market conditions, payment terms are Net 15 days end of month

(3) Accounts receivable, net

Related parties category/name	December 31, 2025	December 31, 2024
Associate
MIDAS	$ 1,541	$ 1,458

The allowance for uncollectable accounts for accounts receivable outstanding is measured according to the provision matrix.

(4) Contract liabilities

Related parties category/name	December 31, 2025	December 31, 2024
Associate
MIDAS	$ 621	$ 621

(5) Lease agreements

Related parties category/name		2025	2024
Acquisition of right-of-use assets
Other related parties
I-Feng Liao		$ 140	$ -
Financial Statement
Account	Related parties category/name	December 31, 2025	December 31, 2024
Lease liabilities	Other related parties
	I-Feng Liao	$ 83	$ 12
Related parties category/name		2025	2024
Finance costs
Other related parties
I-Feng Liao		$ 3	$ 1

This is primarily for warehouse rental, with lease terms of two years. The rent is negotiated by both parties with reference to the neighboring market prices and the leased area, and with fixed monthly lease payments made in accordance with the lease agreements.

(6) Acquisition of endorsements/guarantees

Related parties	December 31, 2025	December 31, 2024
Yu-Pin Liao, Yao-Wen Tsai and Szu-Chun Sung
Guaranteed amounts	$ 20,000	$ 4,480
Actual Amount Borrowed	$ 20,000	$ 4,480
Yu-Pin Liao and Yao-Wen Tsai
Guaranteed amounts	$ 157,501	$ 134,861
Actual Amount Borrowed	$ 157,432	$ 74,861
Yu-Pin Liao
Guaranteed amounts	$ 856,525	$ 768,968
Actual Amount Borrowed	$ 471,478	$ 406,503

The Group's borrowings are jointly and severally guaranteed by the above-mentioned senior management personnel.

(7) Remuneration of senior management

	2025	2024
Short-term employee benefits	$ 20,242	$ 23,424
Post-employment benefits	766	771
	$ 21,008	$ 24,195

The remuneration to directors and other senior management is determined based on individual performance and market trends.

Assets pledged as collateral or for security

The following assets have been provided as collateral for the Group's borrowings and bank acceptances:

	December 31, 2025	December 31, 2024
Financial assets at amortized cost	$ 143,987	$ 109,332
Investment property	82,700	82,979
Right-of-use assets	20,574	21,584
Property, plant and equipment	14,283	16,416
	$ 261,544	$ 230,311

Other material matters and unrecognized commitments

The Group's unrecognized commitments are as follows:

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment, and software service contracts	$ 79,751	$ 229,534

Significant assets and liabilities denominated in foreign currencies

The following information was aggregated by the foreign currencies other than functional currencies of the entities in the Group and the exchange rates between foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

Financial assets	December 31, 2025
	Foreign currency	Exchange rate		NTD
Monetary items
USD	$ 15,506	31.38	(USD:NTD)	$ 486,578
USD	10,978	7.012	(USD:CNY)	344,490
Financial liabilities
Monetary items
USD	10,336	31.38	(USD:NTD)	324,344
USD	4,136	7.012	(USD:CNY)	129,788
Financial assets	December 31, 2024
---	---	---	---	---
	Foreign currency	Exchange rate		NTD
Monetary items
USD	$ 15,116	32.72	(USD:NTD)	$ 494,596
USD	18,349	7.341	(USD:CNY)	600,379
Financial liabilities
Monetary items
USD	$ 8,083	32.72	(USD:NTD)	$ 264,476
USD	4,538	7.341	(USD:CNY)	148,483

The realized and unrealized foreign currency exchange gains and losses of

66 -

the Group in 2025 and 2024 constituted gains of NTD (13,921) thousand and NTD 35,598 thousand, respectively. Due to the variety of foreign currency transactions and entity functional currencies, it is not possible disclose each exchange gain and loss in foreign currencies that had material impact.

32. Separately disclosed items

(1) Information about significant transactions

Financing provided to others: Table 1.
Endorsements/guarantees provided: Table 2.
Marketable securities held at the end of the year (excluding investments in subsidiaries and associates): Table 3.
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4.
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5.
Others: Intercompany relationships and significant intercompany transactions: Table 6.

(2) Information on investees: Table 7.

(3) Information on investments in mainland China

Name of mainland China investee company, major operating items, paid-in capital amount, investment method, capital remittance in and out, shareholding ratio, profit or loss for the current year and recognized investment gains or losses, investment book amount at year end, repatriated investment gains and losses, and investment limit in mainland China: Table 8.
Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:

(1) Amounts and percentages of purchases and the balance and percentages of relevant payables at the end of the year: Table 4.

67 -

(2) Amounts and percentages of sales and the balance and percentages of relevant receivables at the end of the year: Table 4.
(3) The amount of property transactions and the amount of the resultant gains or losses: None.
(4) Ending balance of note endorsement/guarantee or provision of collateral and its purpose: Table 2.
(5) Maximum balance, ending balance, interest rate range, and total interest of the current year for capital financing: Table 1.
(6) Other transactions having material impact on current year profit or loss or financial status, such as the provision or receipt of labor services, etc.: None.

Segment information

The information provided to the major operational decision-makers for allocating resources and evaluating the performance of the segments, with a focus on operating regions. The Group is mainly engaged in the manufacturing and sales of various LCDs and modules. The production process and marketing strategies are the same, but due to factors such as different cultures, environments, and economic characteristics, management must be differentiated according to localities. The Group's reportable segments were as follows:

Domestic operations - Production and sales in the domestic region.
Asian operations - Production and sales in Asia.
Others - Sales in other regions.
68 -

(1) Segment revenue and operating result

Revenue and operating results of the Group's continuing operations are analyzed by reporting segment as follows:

	Segment revenue		Segment profit or loss
	2025	2024	2025	2024
Domestic operations	$ 1,555,971	$ 1,657,422	($ 61,057 )	$ 7,667
Asian operations	336,548	288,619	( 22,001 )	( 22,043 )
Others	137,513	87,882	3,780	3,770
Total from continuing operations	$ 2,030,032	$ 2,033,923	( 79,278 )	( 10,606 )
Interest income			9,949	21,754
Finance costs			( 19,187 )	( 15,231 )
Net gain (loss) on foreign currency exchange			( 13,921 )	35,598
General revenue and profit of the Company			17,503	14,527
General expenses and losses of the Company			( 23,580 )	( 3,659 )
Profit before income tax			($ 108,514 )	$ 42,383

Segment profit refers to the profit earned by each segment, excluding interest income, finance costs, net gain or loss from foreign currency exchange, and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

(2) Segment total assets and liabilities

Segment assets	December 31, 2025	December 31, 2024
Continuing operations
Domestic operations	$ 1,352,542	$ 1,275,378
Asian operations	904,973	1,062,640
Others	64,049	49,197
Total segment assets	2,321,564	2,387,215
Unallocated assets	117,929	98,230
Consolidated total assets	$ 2,439,493	$ 2,485,445
Segment liabilities
Continuing operations
Domestic operations	$ 873,286	$ 736,019
Asian operations	450,160	521,204
Others	8,066	7,629
Segment total liabilities	1,331,512	1,264,852
Unallocated liabilities	63,059	72,406
Consolidated total liabilities	$ 1,394,571	$ 1,337,258

For the purpose of monitoring segment performance and allocating resources to each segment, all assets and liabilities are allocated to reportable departments, other than financial assets at fair value through other comprehensive income, investments recognized using the equity method,

and deferred tax assets and liabilities.

(3) Revenue from major products

	2025	2024
STN display module	$ 848,034	$ 846,601
OLED display panels and modules	520,881	615,853
TFT display modules	596,639	505,552
Others	64,478	65,917
	$ 2,030,032	$ 2,033,923

(4) Geographic information

The Group's continuing operating revenue from external customers by customer location is given as follows:

	2025	2024
Europe	$ 763,333	$ 740,276
Asia	656,919	695,021
America	380,444	381,893
Taiwan	217,770	204,340
Others	11,566	12,393
	$ 2,030,032	$ 2,033,923

(5) Major customers

In 2025 and 2024, no revenue from a single customer accounted for more than 10% of the Group's total revenues.

70 -

Winstar Display Co., Ltd. and Subsidiaries

Financing Provided to Others

For the Year Ended December 31, 2025

Units: NT$ and foreign currency, in thousands

Table 1

Serial No.	Lending Company	Borrower	Associated Items	Whether a Related Party	Highest Balance in the Current Year	Ending Balance	Actual Amount Borrowed (Note 1)	Range of Interest Rates	Nature of Loan	Business Transaction Amount	Reasons for Short Term Financing	Amount of Provision for Losses	Collateral		Limit of Loans to Individual Borrowers	Total Loan Limit
													Item	Value
0	The Company	WINSTAR GER	Other receivables - related parties	Yes	$ 7,346 (EUR 200)	$ 7,346 (EUR 200)	$ 7,346	-	Necessity of short-term financing	$ -	Operating turnover	$ -	-	$ -	$ 8,264	$ 415,945
1	WINSTAR CHANGSHU	VANSTAR	Other receivables - related parties	Yes	$ 36,187 (CNY 8,200)	$ 26,850 (CNY 6,000)	$ 21,480	3.3% (Note 4)	Necessity of short-term financing	$ -	Operating turnover	$ -	-	$ -	$ 170,045 (Note 2)	$ 248,520 (Note 3)

Note 1: The consolidated financial statements have been eliminated.
Note 2: The total amount of loans to a single company shall not exceed 40% of the net worth of the borrower in its latest financial statements, and shall be limited to the amount of paid-in capital.
Note 3: The amount shall not exceed 40% of the net worth of the borrower in its latest financial statements.
Note 4: Total interest expense for the current period was CNY 510 thousand.

Winstar Display Co., Ltd. and Subsidiaries

Endorsements/Guarantees Provided

For the Year Ended December 31, 2025

Units: NT$ and foreign currency, in thousands

Table 2

Serial No.	Endorser/Guaranter	Endorsee/Guarantee		Limits on Endorsement/Guarantee Given on Behalf of Each Party	The Maximum Balance of Endorsements/Guarantees in the Current Year	Balance of Endorsements/Guarantees at the End of the Year	Actual Amount Borrowed	Amount Endorsed/Guaranteed by Collaterals	Ratio of Accumulated Endorsement/Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/Guarantee Limit (Note 3)	Endorsement/Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/Guarantee Given on behalf of Companies in Mainland China
		Company Name	Relationship
0	The Company	RAYSTAR	(Note 1)	(Note 2)	$ 601,725	$ 333,016	$ 103,967	$ -	32	$ 1,039,863	Y	-	-
		VANSTAR	(Note 1)	(Note 2)	44,515	25,475	12,051	25,104	2	1,039,863	Y	-	Y
		WINSTAR CHANGSHU	(Note 1)	(Note 2)	(CNY 5,000)	(CNY 83)
					(USD 800)	(USD 800)	17,498	-	5	1,039,863	Y	-	Y

Note 1: Please refer to Note 11.
Note 2: The cumulative amount of endorsements made by the Company and its subsidiaries for a single enterprise shall not exceed $10\%$ of the Company's net worth, except when the counterparty of the endorsement or guarantee is a company directly or indirectly held by the Company with $100\%$ of voting rights.
Note 3: The Company and its subsidiaries as a whole may make endorsements/guarantees for the total amount up to the net worth stated in the Company's most recent financial statements.

Winstar Display Co., Ltd. and Subsidiaries
Marketable Securities Held at the end of the Year
December 31, 2025

Table 3
Unit: NT$ in thousands

Name of Holding Company	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	Year-End
				Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Company	Stock
Taiwan Semiconductor Manufacturing Co., Ltd.	—	Financial assets at fair value through other comprehensive income -non-current	12,000	$ 18,600	-	$ 18,600

73 -

Winstar Display Co., Ltd. and Subsidiaries

Total Purchases from or Sales to Related Parties Amounting to at Least NT$100 Million or 20% of the Paid-in Capital

For the Year Ended December 31, 2025

Table 4
Unit: NT$ in thousands

Purchaser or Seller	Counterparty	Relationship	Transaction Details				Abnormal Transaction and Reason		Notes/Trade Receivables (Payables)
			Purchase/Sale	Amount	Percentage of Total Purchase (Sale) %	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes and Accounts Receivable (Payable) %
The Company	WINSTAR CHANGSHU	(Note 1)	Purchases of goods (Sale)	$ 986,167	78	90 days end of month	(Note 2)	No significant difference from other general manufacturers	($ 276,189)	( 85 )
		(Note 1)		(219,769)	( 16 )	90 days end of month	(Note 2)	No significant difference from other general customer	56,135	24
RAYSTAR	WINSTAR CHANGSHU	(Note 1)	Purchases of goods (Sale)	180,472	73	90 days end of month	(Note 2)	No significant difference from other general manufacturers	( 37,214 )	( 69 )
		(Note 1)		(175,003)	( 37 )	90 days end of month	(Note 2)	No significant difference from other general customers	50,762	67
WINSTAR CHANGSHU	The Company	(Note 1)	(Sale)	( 986,167 )	( 64 )	90 days end of month	(Note 2)	No significant difference from other general customers	276,189	74
		(Note 1)		(219,769	21	90 days end of month	(Note 2)	No significant difference from other general manufacturers	( 56,135 )	( 17 )
	RAYSTAR	(Note 1)	Purchases of goods	( 180,472 )	( 12 )	90 days end of month	(Note 2)	No significant difference from other general customers	37,214	10
		(Note 1)		(175,003	16	90 days end of month	(Note 2)	No significant difference from other general manufacturers	( 50,762 )	( 15 )

Note 1: Please refer to Note 11.
Note 2: The prices of purchases and sales transactions with related parties are negotiated separately based on product differences, market conditions, and internal transfer pricing policies.
Note 3: The consolidated financial statements have been eliminated.

Winstar Display Co., Ltd. and Subsidiaries
Receivables from Related Parties Amounting to at Least NT$100 Million or 20% of the Paid-in Capital
December 31, 2025

Table 5
Unit: NT$ in thousands

Company Recognizes the Receivables	Counterparty	Relationship	Balance of Receivables from Related Parties (Note 2)	Turnover Rate (Times)	Overdue		Amount Collected in Subsequent Period	Amount of Provision for Losses
					Amount	Action Taken
WINSTAR CHANGSHU	The Company	(Note 1)	Trade receivables $276,189	3.99	$ -	—	$ 179,862	$ -

Note 1: Please refer to Note 11.
Note 2: The consolidated financial statements have been eliminated.

75 -

Winstar Display Co., Ltd. and Subsidiaries
Intercompany Relationships and Significant Intercompany Transactions
For the Year ended December 31, 2025

Table 6
Unit: NT$ in thousands

Serial No.	Company Name	Counterparty	Relationship (Note)	Transaction Details
				Financial Statement Account	Amount	Transaction Terms	As a Percentage of Consolidated Total Revenue or Total Assets (%)
0	The Company	WINSTAR CHANGSHU	1	Operating cost	$ 986,167	90 days end of month	49
				Operating revenue	219,769	90 days end of month	11
				Trade receivables	56,135	90 days end of month	2
				Trade payables	276,189	90 days end of month	11
		RAYSTAR	1	Operating cost	50,374	30 days end of month	2
1	RAYSTAR	WINSTAR CHANGSHU	2	Operating revenue	175,003	90 days end of month	9
				Operating cost	180,472	90 days end of month	9
				Trade receivables	50,762	90 days end of month	2
				Trade payables	37,214	90 days end of month	2
2	WINSTAR CHANGSHU	VANSTAR	2	Operating cost	105,011	30 days end of month	5
		WINSTAR USA	2	Operating revenue	52,667	90 days end of month	3

Note: No. 1 represents the transactions from parent company to subsidiary.
No. 2 represents the transactions between subsidiaries.

Winstar Display Co., Ltd. and Subsidiaries

Investee Company Information, Locations, and Other Related Information

For the Year ended December 31, 2025

Units: NT$ and foreign currency, in thousands

Table 7

Investor	Investee (Note 1)	Location	Principle Business Activity	Initial investment		Year-end holdings			Investee Company Current year Profit (Loss)	Investment Profit (Loss) Recognized by the Company	Remarks
				Current Year End	Prior Year End	Number of Shares (in thousand shares)	Shares %	Carrying Amount
The Company	RAYSTAR	Republic of China	Engaged in research and development, manufacturing, and trading of OLED display modules	$ 471,471	$ 471,471	47,147	100	$ 396,292	($ 36,712)	($ 33,541)	Subsidiary
	WINBEST	United States	Operation of reinvestment business	252,008	204,630	-	100	620,737	3,865	3,865	Subsidiary
	WINCAELUM	Samoa	Operation of reinvestment business	159,782	159,782	8,000	100	81,875	( 3,722)	( 3,722)	Subsidiary
	FAIRLINK	Hong Kong	Operation of reinvestment business	173,883	173,883	20,000	100	( 23,139)	( 15,739)	( 15,739)	Subsidiary
	WINSTAR USA	United States	Import and export of electronic components	2,721	2,721	90	90	14,257	6,822	6,140	Subsidiary
	WINSTAR GER	Germany	Import and export of electronic components	7,644	837	225	100	877	( 6,505)	( 6,505)	Subsidiary
	MIDAS	United Kingdom	Trading of electronic components	9,148	9,148	-	39	6,702	( 5,535)	( 2,157)	Associates accounted for using the equity method
WINCAELUM	KENSTAR	Myanmar	Manufacturing, processing, and trading of various liquid crystal displays and modules	155,138 (USD 4,956)	155,138 (USD 4,956)	496	100	81,749 (USD 2,605)	( 3,724) (USD 120)	(Note 2)	Subsidiary

Note 1: The consolidated financial statements have been eliminated.
Note 2: May be omitted as per the regulations.

Winstar Display Co., Ltd. and Subsidiaries

Information on Investments in Mainland China

For the Year Ended December 31, 2025

Units: NT$ and foreign currency, in thousands

Table 8

Investee (Note 1)	Principle Business Activity	Total Paid-in Capital	Method of Investment	Accumulated Investment Amount Remitted from Taiwan at the Beginning of the Current Year	Investment Amount Remitted or Recovered during the Current Year		Accumulated Investment Amount Remitted from Taiwan at the End of the Current Year	Investee Company Current Year Profit (Loss)	The Company's Direct or Indirect Percentage of Ownership	Investment Profit (loss) Recognized in the Current Year (Note 3)	Book Value of Investments at the End of the Year	Investment Income Repatriated by the End of the Year
					Outflow	Inflow
WINSTAR CHANGSHU	Manufacturing and processing of various LCD displays and modules	$ 174,342 (CNY 42,736)	Note 2	$ 203,281 (USD 6,557)	$ 47,378 (USD 1,500)	$ -	$ 250,659 (USD 8,057)	$ 3,863 (CNY 897)	100%	$ 3,863 (CNY 897)	$ 621,299 (CNY 138,836)	$ 53,383
VANSTAR	Manufacturing and processing of various LCD displays and modules	$ 170,045 (CNY 36,955)	Note 2	$ 170,045 (USD 5,670)	$ -	$ -	$ 170,045 (USD 5,670)	$ ( 15,739) (CNY 3,653)	100%	$ ( 15,739) (CNY 3,653)	$ ( 23,139) (CNY 5,171)	$ -
Cumulative Amount of Investment Remitted from Taiwan to Mainland China at the End of the Current Year	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 4)
---	---	---
$ 420,704 (USD 13,727)	$ 420,704 (USD 13,727)	(Note 5)

Note 1: The consolidated financial statements have been eliminated.
Note 2: This refers to the reinvestment in companies in mainland China through reinvestment in an existing company in a third region.
Note 3: Investment gains and losses are recognized based on the financial statements Reviewed by the same CPA firm as that engaged by the parent company in Taiwan.
Note 4: The limit is calculated in accordance with the Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China.
Note 5: In accordance with the "Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China" issued by the Investment Review Commission on August 29, 2008, the Company has obtained certification documents issued by Industrial Development Bureau, Ministry of Economic Affairs attesting that it complies with the operation scope of the operational headquarters. There is no upper limit on the amount of investment in the Mainland China area.

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WINSTAR — Audit Report / Information 2025

52659_rns_2026-05-18_9cd6b220-c6b3-4244-84bd-f97755cdb4dc.pdf

Winstar Display Co., Ltd. and Subsidiaries

Declaration of consolidation of financial statements of affiliates

Key Audit Matter

Authenticity of revenue recognition from specific customers

Other Matters

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

4. Summary of significant accounting policies information

(1) Statement of compliance

(2) Basis of preparation

6. Cash and cash equivalents

7. Financial assets at amortized cost

8. Financial assets at fair value through other comprehensive income -non-current

13. Property, plant and equipment

14. Lease arrangements

(1) Right-of-use assets

(2) Lease liabilities

(3) Important leasing activities and terms

16. Other assets

17. Borrowings

(1) Short-term borrowings

(2) Long-term borrowings

18. Other payables

19. Retirement benefit plans

(1) Defined contribution plan

(2) Defined benefit plan

20. Equity

(1) Ordinary shares

(2) Capital surplus

(4) Special reserve

21. Revenue

22. Comprehensive income for the year

(1) Employee benefits, depreciation, and amortization expenses

(2) Amortization expenses

25. Cash flow information

(1) Non-cash transactions

(2) Changes in liabilities from financing activities

Sensitivity analysis

32. Separately disclosed items

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WINSTAR Audit Report / Information 2025