XAVi — Audit Report / Information 2025

Apr 29, 2026

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2025 AND 2024

---

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

~1~

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Xavi Technologies Corporation

Opinion

We have audited the accompanying consolidated balance sheets of Xavi Technologies Corporation and its subsidiaries (the “Group”) as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

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

~2~

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group’s 2025 consolidated financial statements. These matters were 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 these matters.

Key audit matter for the Group’s 2025 consolidated financial statements is stated as follows:

Recognition of sales revenue

Description

Refer to Notes 4(27) and 6(14) of the consolidated financial statements for the accounting policy and disclosures in relation to revenue recognition.

The Group is primarily engaged in the sales of network communication products. Given that the sales revenue recognition of major customers could have a significant impact on the financial statements and sales revenue from the top ten customers accounts for over 98% of total sales revenue, the recognition of sales revenue transactions from top ten customers has been identified as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

1. Obtained an understanding and assessed the internal control procedures for the customers and selected samples to verify the effectiveness of internal controls over sales revenue recognition.

2. Performed substantive tests by selecting samples of sales revenue transactions from the top ten customers to ascertain the appropriateness of sales revenue.

3. Performed confirmation procedures on significant year-end accounts receivable balances.

~3~

1. Checked and assessed whether there were any unusual significant sales returns and discounts after the balance sheet date.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Xavi Technologies Corporation as at and for the years ended December 31, 2025 and 2024.

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 the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, 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.

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

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

~4~

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 Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

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

2. 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 Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

~5~

1. 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 Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the 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 conditions may cause the Group to cease to continue as a going concern.

2. 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.

3. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the 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.

~6~

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

Liang, Hua-Ling Liao, Fu-Ming For and on Behalf of PricewaterhouseCoopers, Taiwan March 3, 2026

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

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

~7~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 7 7 6(4) 8 6(2) 6(5) 6(6) 6(20) 8	December 31, 2025 AMOUNT % $ 701,848 22 17,062 1 944,624 30 4,651 - 238,556 7 - - 938,849 29 81,435 3 735 - 2,927,760 92 5,970 - 216,811 7 6,218 - 2,270 - 3,132 - 21,271 1 255,672 8 $ 3,183,432 100	December 31, 2024	December 31, 2024
		AMOUNT $ 701,848 17,062 944,624 4,651 238,556 - 938,849 81,435 735 2,927,760 5,970 216,811 6,218 2,270 3,132 21,271 255,672 $ 3,183,432	AMOUNT $ 881,229 31,193 708,633 83,331 224,643 527 804,933 117,301 4,705 2,856,495 4,590 231,195 14,986 2,304 909 12,819 266,803 $ 3,123,298	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1600 Property, plant and equipment, net 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				28 1 23 2 7 - 26 4 -
				91
				- 7 1 - - 1
				9
				100

(Continued)

~8~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2025 Notes AMOUNT % 6(7) $ 148,000 5 6(2) 8,084 - 6(14) 295,711 9 - - 874,583 27 6(8) 480,845 15 7 18,649 1 52,530 2 7 6,338 - 2,560 - 1,887,300 59 6(20) 5,069 - 7 - - 5,069 - 1,892,369 59 6(11) 774,491 25 - - 6(12) 186,771 6 6(13) 68,214 2 5,672 - 256,007 8 ( 92) - 1,291,063 41 1,291,063 41 9 11 $ 3,183,432 100	December 31, 2024	December 31, 2024
		AMOUNT $ 169,205 1,100 390,396 4,000 698,641 483,594 101,373 21,454 8,861 4,857 1,883,481 4,126 6,288 10,414 1,893,895 773,101 282 186,322 58,298 32,872 174,756 3,772 1,229,403 1,229,403 $ 3,123,298	%
Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2200 Other payables 2220 Other payables - related parties 2230 Income tax liabilities 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2570 Deferred tax liabilities 2580 Lease liabilities - non-current 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3140 Advance receipts for share capital Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity			5 - 13 - 22 16 3 1 - -
			60
			- 1
			1
			61
			25 - 6 2 1 5 -
			39
			39
			100

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

~9~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Year ended December 31 2025 2024 Notes AMOUNT % AMOUNT % 6(14) and 7 $ 3,654,971 100 $ 2,558,314 100 6(4)(18)(19) and 7 ( 3,264,316) ( 90) ( 2,259,136) ( 88) 390,655 10 299,178 12 6(18)(19) and 7 ( 70,778) ( 2) ( 63,941) ( 2) ( 95,954) ( 2) ( 74,328) ( 3) ( 133,226) ( 4) ( 145,628) ( 6) 12(2) ( 2,663) - 9,372 - ( 302,621) ( 8) ( 274,525) ( 11) 88,034 2 24,653 1 6(15) 28,464 1 32,714 1 6(16) 45,989 1 7,191 - 6(17) 8,080 - 61,150 2 7 ( 3,793) - ( 6,986) - 78,740 2 94,069 3 166,774 4 118,722 4 6(20) ( 43,276) ( 1) ( 25,943) ( 1) $ 123,498 3 $ 92,779 3 6(9) $ 2,334 - $ 6,382 - ( 3,864) - 36,644 2 ($ 1,530) - $ 43,026 2 $ 121,968 3 $ 135,805 5 $ 123,498 3 $ 92,779 3 $ 121,968 3 $ 135,805 5 6(21) $ 1.60 $ 1.20 $ 1.59 $ 1.20

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit (loss) gain 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Remeasurements of defined benefit plan Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Total other comprehensive (loss) income for the year 8500 Total comprehensive income for the year Profit attributable to: 8610 Owners of the parent Comprehensive income attributable to: 8710 Owners of the parent Earnings per share (in NTD dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

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

~10~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

2024 Balance at January 1, 2024 Profit for the year Other comprehensive income for the year Total comprehensive income Appropriation of 2023 earnings Special reserve Share-based payments Exercise of employee share options Balance at December 31, 2024 2025 Balance at January 1, 2025 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriations of 2024 earnings Legal reserve Reversal of special reserve Cash dividends Exercise of employee share options Balance at December 31, 2025	Notes		Share Capital	Share Capital		Capital surplus			Retained Earnings	Retained Earnings			Financial statements translation differences of foreign operations		Total equity
			Common stock	Advance receipts for share capital				Legal reserve		Special reserve		Unappropriated retained earnings
	6(9) 6(13) 6(10) 6(11) 6(9) 6(13) 6(11)		$ 769,956 - - - - - 3,145 $ 773,101 $ 773,101 - - - - - - 1,390 $ 774,491	$ 778 - - - - - ( 496 ) $ 282 $ 282 - - - - - - ( 282 ) $ -		$ 184,807 - - - - 446 1,069 $ 186,322 $ 186,322 - - - - - - 449 $ 186,771		$ 58,298 - - - - - - $ 58,298 $ 58,298 - - - 9,916 - - - $ 68,214	$ 32,474 - - - 398 - - $ 32,872 $ 32,872 - - - - ( 27,200) - - $ 5,672		$ 75,993 92,779 6,382 99,161 ( 398 ) - - $ 174,756 $ 174,756 123,498 2,334 125,832 ( 9,916 ) 27,200 ( 61,865 ) - $ 256,007		($ 32,872) - 36,644 36,644 - - - $ 3,772 $ 3,772 - ( 3,864) ( 3,864) - - - - ($ 92)	$ 1,089,434 92,779 43,026 135,805 - 446 3,718 $ 1,229,403 $ 1,229,403 123,498 ( 1,530 ) 121,968 - - ( 61,865 ) 1,557 $ 1,291,063

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

~11~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortization Expected credit loss (gain) Net loss on financial assets and liabilities at fair value through profit or loss - others Net loss (gain) on financial assets and liabilities at fair value through profit or loss - derivative instruments Interest expense Interest income Dividend income Share-based payments Loss on disposal of property, plant and equipment Loss (gain) on lease modification Advance receipts and payables overdue by more than two years reclassified as other income Changes in operating assets and liabilities Changes in operating assets Financial assets and liabilities at fair value through profit or loss - derivative instruments Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Net defined benefit asset Cash (outflow) inflow generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows (used in) from operating activities

YearendedDecember 31 Notes 2025 2024 $ 166,774 $ 118,722 6(5)(6)(18) 80,531 91,789 6(18) 2,738 2,293 12(2) 2,663 ( 9,372 ) 6(2)(17) 11,835 15,660 6(2)(17) 28,560 ( 12,646 ) 3,793 6,986 6(15) ( 28,464 ) ( 32,714 ) 6(16) ( 1,033 ) ( 1,231 ) 6(10) - 446 6(17) 231 159 6(6) 1 ( 1 ) 6(16) ( 34,193 ) - ( 19,457 ) 629 ( 238,654 ) ( 387,828 ) 77,991 ( 63,112 ) 4,996 ( 1,906 ) 527 ( 527 ) ( 101,812 ) 47,315 35,045 ( 31,002 ) 3,841 ( 1,353 ) ( 58,389 ) 250,931 ( 3,867 ) 1,317 143,888 293,878 - ( 2,740 ) 1,286 88,121 ( 82,049 ) 66,665 ( 2,321 ) 19 ( 375 ) ( 61 ) ( 5,914 ) 440,437 28,464 32,714 1,033 1,231 ( 4,267 ) ( 6,750 ) ( 21,714 ) ( 27,317 ) ( 2,398 ) 440,315

(Continued)

~12~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through profit or loss - others Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in refundable deposits Increase in other non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Payments of lease liabilities Cash dividends paid Exercise of employee share options Net cash flows used in financing activities Effect of exchange rate changes Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2025 2024 ($ 1,191 ) $ - 6(5) ( 50,651 ) ( 40,369 ) 924 3,233 ( 2,700 ) ( 2,466 ) 138 105 ( 5,588 ) ( 61 ) ( 59,068 ) ( 39,558 ) 6(22) ( 20,567 ) ( 262,887 ) 6(22) ( 8,873 ) ( 21,734 ) 6(13) ( 61,865 ) - 1,557 3,718 ( 89,748 ) ( 280,903 ) ( 28,167 ) 1,781 ( 179,381 ) 121,635 6(1) 881,229 759,594 6(1) $ 701,848 $ 881,229

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

~13~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. HISTORY AND ORGANISATION

XAVi Technologies Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) in June 1997 and commenced its operations in October 1997. The Company became listed on the Taiwan Stock Exchange (TWSE) in December, 2022. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the research and development, manufacture and sales of network communication products. As of December 31, 2025, Chicony Electronics Co., Ltd. holds a 40.23% equity interest in the Company and is the Company’s ultimate parent company.

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

These consolidated financial statements were authorised for issuance by the Board of Directors on March 3, 2026.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

2025 are as follows:
New Standards,InterpretationsandAmendments	Effective date by International Accounting StandardsBoard
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

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

~14~

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Group

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

==> picture [484 x 48] intentionally omitted <==

----- Start of picture text -----

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

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

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

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

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

New standards, interpretations and amendments issued by IASB but not Accounting Standards as endorsed by the FSC are as follows:	yet included in the IFRS
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 18, ‘Presentation and disclosure in financial statements’ IFRS 19, ‘Subsidiaries without public accountability: disclosures’ Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	To be determined by International Accounting Standards Board January 1, 2027 (Note) January 1, 2027 January 1, 2027

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

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

~15~

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, the Group’s financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Defined benefit assets/liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in compliance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated.

~16~

• (c) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary Main business activities Directmax International Ltd. (Directmax) Overseas investment XAVi Technologies (Thailand) Co., Ltd. (XAVi Thailand) Manufacturing, puchases, and sales of network communication products XAVi Overseas Ltd. (XAVi Overseas) Overseas investment Systemax Development Ltd. (Systemax) Purchases and sales of network communication products XAVi Technologies (Suzhou) Co., Ltd. (XAVi Suzhou) Manufacturing, puchases, and sales of network communication products		December 31,2025 December 31, 2024 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ownership (%)	Description - - - - -
			December 31,2025
The Company The Company Directmax International Ltd. (Directmax) Directmax International Ltd. (Directmax) Directmax International Ltd. (Directmax)			100% 100% 100% 100% 100%

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

~17~

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

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

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

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

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

• B. Translation of foreign operations

  • The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • (c) All resulting exchange differences are recognised in other comprehensive income.

• (5) Classification of current and non-current items

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

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

~18~

• (b) Assets held primarily for the purpose of trading;

• (c) Assets that are expected to be realised within twelve months after the reporting period;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

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

• (a) Liabilities that are expected to be settled in the normal operating cycle;

• (b) Liabilities arising primarily from trading activities;

• (c) Liabilities that are due to be settled within twelve months after the reporting period;

• (d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

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

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

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

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

(9) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income including accounts receivable that have a significant financing component, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand,

~19~

for accounts receivable that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(11) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and applicable variable selling expenses.

(12) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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

Machinery equipment Office equipment Other equipment

1~10 years 1~10 years 1~5 years

~20~

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

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

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability;

• (b) Any lease payments made at or before the commencement date;

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

(14) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 1 to 5 years.

(15) Impairment of non-financial assets

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

(16) Borrowings

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

~21~

(17) Notes and accounts payable

Accounts and notes payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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

• A. They are financial liabilities designated as at fair value through profit or loss on initial recognition. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss at initial recognition:

• (a) Hybrid (combined) contracts; or

• (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or

• (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management policy.

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value. Any changes in the fair value are recognised in profit or loss.

(19) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(20) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(21) Non-hedging and embedded derivatives

Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

(22) Employee benefits

• A. Short-term employee benefits

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

~22~

B. Pensions

(a) Defined contribution plans

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

(b) Defined benefit plans

  - i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

  - ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

  - iii. Past service costs are recognised immediately in profit or loss.

• C. Termination benefits

• Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises an expense when it can no longer withdraw an offer of termination benefits or when it recognises related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after the balance sheet date shall be discounted to their present value.

• D. Employees’ compensation and directors’ remuneration

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

~23~

- (23) Employee share based payment

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

• (24) Income tax

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

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

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

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

~24~

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

• (25) Share capital

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

• (26) Dividends

Cash dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders or resolved by the more than half of the directors present at the meeting where more than two-thirds of the directors are present. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

• (27) Revenue recognition

• A. Sales of goods

  • (a) The Group’s sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customers, and either the customers has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

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

• B. Service revenue

  • The Group provides OEM services for network communication products. Relevant revenue is recognised when the services are rendered.

• C. Incremental costs of obtaining a contract

  • Given that the contractual period lasts less than one year, the Group recognises the incremental costs of obtaining a contract as an expense when incurred although the Group expects to recover those costs.

~25~

(28) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group’s chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

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

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

None.

(2) Critical accounting estimates and assumptions

• Evaluation of inventories

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

As of December 31, 2025, the carrying amount of inventories was $938,849.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December31,2025 1,266 $ 530,273 170,309 701,848 $	December31,2024
		1,193 $ 644,220 235,816
		881,229 $

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

• B. The Group has no cash and cash equivalents pledged to others.

~26~

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

Items		December	31,2025		December	31,2024
Current items:
Financial assets mandatorily measured at fair
value through profit or loss
Listed stocks		$	73,717		$	72,621
Convertible bonds			95			-
Non-hedging derivatives
Forward foreign exchange contracts			573			2,432
Foreign exchange swap contracts			-			248
			74,385			75,301
Valuation adjustment	(		57,323)	(		44,108)
		$	17,062		$	31,193
Financial liabilities mandatorily measured at
fair value through profit or loss
Non-hedging derivatives
Forward foreign exchange contracts		$	8,084		$	1,100
Non-current items:
Financial assets mandatorily measured at fair
value through profit or loss
Beneficiary certificates		$	30,000		$	30,000
Valuation adjustment	(		24,030)	(		25,410)
		$	5,970		$	4,590

• A. Amounts recognised in profit or loss in relation to financial assets and liabilities at fair value through profit or loss are listed below:

		YearendedDecember31	YearendedDecember31
		2025	2024
Equity instruments	($	13,218)	($	14,790)
Debt instruments		3		-
Beneficiary certificates		1,380	(	870)
Derivative instruments	(	28,560)		12,646
	($	40,395)	($	3,014)

~27~

• B. Details of the transactions and contract information related to derivative financial assets and liabilities which were not accounted for using hedge accounting are as follows:

		December	31,2025
	Contract amount
Current items	(Notionalprincipal)		Expiry date
Forward foreign exchange contracts
- Buy USD sell THB	USD	16,000 thousand	2026.1.7-2026.3.25
		December	31,2024
	Contract amount
Current items	(Notional principal)		Expiry date
Forward foreign exchange contracts
- Buy USD sell THB	USD	14,000 thousand	2025.1.2-2025.3.3
- Buy NTD sell USD	USD	2,000 thousand	2025.3.31
Foreign exchange swap contracts
- Buy USD sell NTD	USD	2,000 thousand	2025.1.2

Forward foreign exchange contracts / Foreign exchange swap contracts

The Group entered into forward foreign exchange contracts and foreign exchange swap contracts to buy (sell) forward foreign exchange and foreign exchange swap to hedge exchange rate risk of import and export proceeds. However, these forward foreign exchange contracts and foreign exchange swap contracts are not accounted for under hedge accounting.

• C. The Group has no financial assets at fair value through profit or loss pledged to others as collateral.

• D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

(3) Accounts receivable

in Note 12(2). Accounts receivable
		December	31,2025		December	31,2024
Accounts receivable		$	958,754		$	720,100
Less: Allowance for uncollectible accounts	(		14,130)	(		11,467)
		$	944,624		$	708,633

• A. The ageing analysis of accounts receivable that was past due but not impaired is as follows:

	December 31, 2025	December 31, 2025	December31,2024	December31,2024
		Accounts		Accounts
		receivable		receivable
Not past due	$	759,128	$	504,884
1 - 30 days		111,279		208,187
31 - 60 days		26,463		-
61 - 90 days		55,428		-
Over 90 days		6,456		7,029
	$	958,754	$	720,100

The above ageing analysis was based on past due date.

~28~

• B. As of December 31, 2025 and 2024, accounts receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers amounted to $332,000.

• C. The Group has no accounts receivable pledged to others as collateral.

• D. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable was equal to the carrying amount.

• E. Information relating to credit risk of accounts receivable is provided in Note 12(2).

• (4) Inventories

Raw materials Work in progress Finished goods Raw materials Work in progress Finished goods	Cost 907,123 $ 97,661 135,538 1,140,322 $ Cost 876,190 $ 88,205 102,596 1,066,991 $	Allowance for valuation loss 175,289) ($ 22,102) ( 4,082) ( 201,473) ($ December 31, 2025 Allowance for valuation loss 235,617) ($ 18,492) ( 7,949) ( 262,058) ($ December31,2024	Bookvalue 731,834 $ 75,559 131,456 938,849 $ Book value 640,573 $ 69,713 94,647 804,933 $

The cost of inventories recognised as expense for the year:

			Year ended December 31	Year ended December 31	Year ended December 31	Year ended December 31
			2025			2024
Cost of goods sold		$	3,304,747		$	2,345,011
Gain on reversal of decline in market value	(		43,691)	(		81,642)
Others			3,260	(		4,233)
		$	3,264,316		$	2,259,136

• A. The other losses and gains include (gain) loss on physical count, disposal, and scrap revenue.

• B. The Group reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold because of the sale of certain inventories which were previously provided with allowance.

~29~

(5) Property, plant and equipment

Property, plant and equipment
At January 1 Cost Accumulated depreciation Opening net book amount Additions Disposals Depreciation Net exchange differences Closing net book amount At December 31 Cost Accumulated depreciation At January 1 Cost Accumulated depreciation Opening net book amount Additions Disposals Depreciation Net exchange differences Closing net book amount At December 31 Cost Accumulated depreciation	Machinery Office Other equipment equipment equipment 547,049 $ 65,726 $ 37,602 $ 650,377 $ 337,328) ( 48,010) ( 33,844) ( 419,182) ( 209,721 $ 17,716 $ 3,758 $ 231,195 $ 209,721 $ 17,716 $ 3,758 $ 231,195 $ 38,391 4,581 7,679 50,651 3) ( 227) ( 925) ( 1,155) ( 60,652) ( 7,765) ( 3,285) ( 71,702) ( 6,420 500 902 7,822 193,877 $ 14,805 $ 8,129 $ 216,811 $ 584,902 $ 68,766 $ 29,987 $ 683,655 $ 391,025) ( 53,961) ( 21,858) ( 466,844) ( 193,877 $ 14,805 $ 8,129 $ 216,811 $ 2025 Total 2024
	Machinery Office Other equipment equipment equipment 539,647 $ 60,954 $ 35,128 $ 635,729 $ 313,362) ( 41,021) ( 31,476) ( 385,859) ( 226,285 $ 19,933 $ 3,652 $ 249,870 $ 226,285 $ 19,933 $ 3,652 $ 249,870 $ 31,168 3,790 5,411 40,369 140) ( - 3,252) ( 3,392) ( 60,852) ( 6,990) ( 2,298) ( 70,140) ( 13,260 983 245 14,488 209,721 $ 17,716 $ 3,758 $ 231,195 $ 547,049 $ 65,726 $ 37,602 $ 650,377 $ 337,328) ( 48,010) ( 33,844) ( 419,182) ( 209,721 $ 17,716 $ 3,758 $ 231,195 $ Total

A. The Group has no property, plant and equipment pledged to others as collateral.

B. The Group has no interest capitalised for the years ended December 31, 2025 and 2024.

~30~

－ (6) Lease transactions lessee

• A. The Group leases various assets including buildings and structures. Rental contracts are typically made for periods of 1 to 4 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants.

• B. Short-term leases with a lease term of 12 months or less comprise parking and office spaces. Lowvalue assets comprise multifunction printers. These leases are not included in right-of-use assets.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Buildings and structures Buildings and structures	December 31, 2025 December 31, 2024 Carrying amount Carrying amount 6,218 $ 14,986 $ Year ended December 31	December 31, 2024
		Carrying amount
		14,986 $
	2025 2024 Depreciationcharge Depreciation charge 8,829 $ 21,649 $

• D. For the years ended December 31, 2025 and 2024, there were no additions to right-of-use assets.

• E. Except for the depreciation mentioned above, other information on profit and loss accounts relating to lease contracts is as follows:

			Year ended	December 31	December 31
			2025		2024
Items affecting profit or loss
Interest expense on lease liabilities		$	188	$	406
Expense on short-term lease contracts			36,853		16,482
Expense on leases of low-value assets			189		196
(Loss) gain on lease modification	(		1)		1

• F. For the years ended December 31, 2025 and 2024, the Group’s total cash outflow for leases were $46,103 and $38,818, respectively.

• (7) Short-term borrowings

Short-term borrowings
Type ofborrowings Bank unsecured borrowings Type ofborrowings Bank unsecured borrowings	December31,2025 148,000 $ December31,2024 169,205 $	Interest raterange 1.86%~1.87% Interest raterange 1.98%~3.45%	Collateral
			None Collateral
			None

Information relating to the guarantee notes issued for the above borrowings as of December 31, 2025 is provided in Note 9.

~31~

(8) Other payables

Wages, salaries and bonuses payable Employees’ compensation and directors’ remuneration payable Testing expenses payable Payables for freight and customs fees Processing expenses payable Others	December31,2025 79,486 $ 21,942 212,202 35,260 15,025 116,930 480,845 $	December31,2024
		85,130 $ 16,189 176,510 33,228 15,652 156,885
		483,594 $

(9) Pensions

A. Defined benefit plans

• (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

• (b) The amounts recognised in the balance sheet are as follows:

	December	31,2025	December	31,2024
Present value of defined benefit obligations	($	8,951)	($	11,605)
Fair value of plan assets		23,151		23,096
Net defined benefit asset	$	14,200	$	11,491

~32~

(c) Movements in net defined benefit assets are as follows:

	Present value of	Present value of
	defined benefit				Fair value of			Net defined
		obligations			plan assets			benefit asset
2025
Balance at January 1	($	11,605)		$	23,096		$	11,491
Interest (expense) income	(	186)			370			184
	(	11,791)			23,466			11,675
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-			1,603			1,603
Change in financial assumptions	(	181)			-	(		181)
Experience adjustments		912			-			912
		731			1,603			2,334
Pension fund contribution		-			-			-
Paid pension		2,109	(		1,918)			191
Balance at December 31	($	8,951)		$	23,151		$	14,200
	Present value of
	defined benefit				Fair value of			Net defined
		obligations			plan assets			benefit asset
2024
Balance at January 1	($	16,618)		$	21,666		$	5,048
Interest (expense) income	(	199)			260			61
	(	16,817)			21,926			5,109
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-			1,915			1,915
Change in financial assumptions		347			-			347
Experience adjustments		4,120			-			4,120
		4,467			1,915			6,382
Pension fund contribution		-			-			-
Paid pension		745	(		745)			-
Balance at December 31	($	11,605)		$	23,096		$	11,491

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitisation

~33~

products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

The principal actuarial assumptions used were	as follows:	as follows:
Discount rate Future salary increases	2025 2024 1.30% 1.60% 3.00% 3.00% YearendedDecember31
		1.60%
		3.00%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

December 31, 2025 Effect on present value of defined benefit obligation ( December 31, 2024 Effect on present value of defined benefit obligation (	Increase 0.25% Decrease 0.25% 152) $ 156 $ 209) $ 215 $ Discount rate	Increase 0.25% Decrease 0.25% 131 $ 128) ($ 183 $ 179) ($ Future salaryincreases
	Increase 0.25% 152) $ 209) $

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 amount to $0.

~34~

• (g) As of December 31, 2025, the weighted average duration of the retirement plan is 7 years. The analysis of timing of the future pension payment was as follows:

Within 1 year	$	1,169
1-2 years		525
2-5 years		2,173
Over 5 years		3,165
	$	7,032

  - (h) The overseas subsidiary in Thailand employs a defined benefit retirement plan applicable to all regular employees. Retirement benefits recognized under this plan amounted to $3,802 and $2,283 for the years ended December 31, 2025 and 2024, respectively.

• B. Defined contribution plans

  • (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  • (b) The Company’s mainland China subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

  • (c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024 were $20,360 and $25,286, respectively.

• (10) Share-based payment

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

Type ofarrangement First employee stock options	Grantdate 2021.8.31	Quantity granted 910	Contract period 4 years	Vesting conditions
				Note

Note: Stocks options are 50% vested after two years from the grant date and 100% vested after three years from the grant date.

~35~

• B. Details of the share-based payment arrangements are as follows: First employee stock options

First employee stock options
			2025				2024
			Weighted-average				Weighted-average
		No. of		exercise price		No. of	exercise price
		options		(indollars)		options	(indollars)
Options outstanding at January 1		118	$	13.40		441	13.40 $
Options exercised	(	118)		13.20	(	278)	13.40
Options expired		-		-	(	45)	-
Options outstanding at December 31		-		-		118	13.40
Options exercisable at December 31		-		-		118	13.40

• C. As of December 31, 2025 and 2024, the exercise prices of stock options outstanding was $0 and $13.4 (in dollars), respectively; the weighted-average remaining contractual period was 0 year and 0.25 years, respectively.

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

Type of arrangement Grant date First employee stock options 2021.8.31	Stock price (indollars) $ 15.95	Exercise price (indollars) $ 15	Expected price volatility 34.49%	Expected option life 3.25 years	Expected dividends -	Risk- free rate 0.27%	Fair value per unit (indollars) $ 4.3229

• E. Expenses incurred on share-based payment transactions are shown below:

Equity-settled	Year ended December 31	Year ended December 31
	2025 - $	2024
		446 $

(11) Share capital

• A. As of December 31, 2025, the Company’s authorised capital was $1,000,000, and the paid-in capital was $774,491, consisting of 77,449 thousand shares of ordinary stock, with a par value of $10 (in dollars) per share.

Movements in the number of the Company’s ordinary shares outstanding are as follows (shares in thousands):

in thousands):
At January 1 Employee stock options exercised At December 31	2025 77,310 139 77,449	2024
		76,996 314
		77,310

~36~

• B. On March 11, 2024, the Board of Directors of the Company resolved the first subscription of issued new shares resulting from the exercise of employee stock options in 2021. Each unit can be used to subscribe 1 thousand ordinary shares. There were 58 units exercised to subscribe 58 thousand shares at $13.4 (in dollars) per share. The effective date of the capital increase was on March 12, 2024 and the registration was completed on April 9, 2024.

• C. On April 30, 2024, the Board of Directors of the Company resolved the first subscription of issued new shares resulting from the exercise of employee stock options in 2021. Each unit can be used to subscribe 1 thousand ordinary shares. There were 30 units exercised to subscribe 30 thousand shares at $13.4 (in dollars) per share. The effective date of the capital increase was on May 29, 2024 and the registration was completed on July 12, 2024.

• D. On November 1, 2024, the Board of Directors of the Company resolved the first subscription of issued new shares resulting from the exercise of employee stock options in 2021. Each unit can be used to subscribe 1 thousand ordinary shares. There were 226 units exercised to subscribe 226 thousand shares at $13.4 (in dollars) per share. The effective date of the capital increase was on November 4, 2024 and the registration was completed on November 20, 2024.

• E. On February 27, 2025, the Board of Directors of the Company resolved the first subscription of issued new shares resulting from the exercise of employee stock options in 2021. Each unit can be used to subscribe 1 thousand ordinary shares. There were 21 units exercised to subscribe 21 thousand shares at $13.4 (in dollars) per share. The effective date of the capital increase was on March 3, 2025 and the registration was completed on March 24, 2025.

• F. On August 4, 2025, the Board of Directors of the Company resolved the first subscription of issued new shares resulting from the exercise of employee stock options in 2021. Each unit can be used to subscribe 1 thousand ordinary shares. There were 118 units exercised to subscribe 118 thousand shares at $13.2 (in dollars) per share. The effective date of the capital increase was on August 5, 2025 and the registration was completed on September 16, 2025.

• (12) Capital surplus

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

~37~

(13) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s profit after tax, if any, shall first be used to offset prior years’ operating losses (including the adjustment of unappropriated earnings) and then 10% of the remaining amount shall be set aside as legal reserve until it reaches the Company’s paid-up capital. After that, special reserve shall be set aside or reversed in accordance with related regulations issued by the Competent Authority. The remainder, if any, along with accumulated unappropriated earnings at the beginning of the year (including the adjustment of unappropriated earnings) shall be proposed by the Board of Directors and resolved at the shareholders’ meeting to distribute as dividend and bonus or to reserve it. Effective from June 4, 2019, the Company authorizes the Board of Directors may, upon resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, distribute dividends and bonus, legal reserve or capital surplus regulated by Article 241 paragraph 1 of the Company Act, in whole or in part, in the form of cash, which shall also be reported at the shareholders’ meeting.

• B. The Company’s dividend policy is summarized below: the Company is in the development stage of the electronics industry. The dividend policy should be formulated by considering both the capital requirements of the new products and the increase in return on stockholders’ equity. Therefore, the total amounts of stockholders’ dividends should not less than 10% of the total distributable earnings and dividends could be distributed as stock dividends or cash dividends. However, cash dividends shall account for at least 10% of the total dividends distributed. The above restrictions will not be applicable if total amount of stockholders’ dividends is less than $0.5 (in dollars) per share.

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

• D. Special reserve

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

• (b) The amounts previously set aside by the Company as special reserve of $5,672 on initial application of IFRSs in accordance with Order No. Financial-Supervisory-SecuritiesCorporate-1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

~38~

E. Distribution of retained earnings:

• (a) Details of the distribution of 2024 and the deficit compensation for 2023 earnings as approved

at the shareholders’ meeting on May 27, 2025 and May 28, 2024, respectively, are as follows:

			Years ended	Years ended	December31
		2024			2023
				Dividend			Dividend
				per share			per share
		Amount	(indollars)		Amount	(in dollars)
Legal reserve		9,916 $			- $
(Reversal of) appropriation for
special reserve	(	27,200)			398
Cash dividends		61,865	$	0.80	-	$	-

(b) Subsequent events:

The appropriations of 2025 earnings had been proposed by the Board of Directors on March 3, 2026. Details are summarized as follows:

3, 2026. Details are summarized as follows:
Legal reserve Cash dividends	YearendedDecember31,2025
	Amount 12,583 $ 85,194	Dividend per share (indollars)
		1.10 $

The appropriations of 2025 earnings, aside from the cash dividends which had been resolved by the Board of Directors and shall only be reported to the shareholders, have not yet been resolved by the shareholders as of March 3, 2026.

~39~

(14) Operating revenue

A. Disaggregation of revenue from contracts with customers:

==> picture [459 x 244] intentionally omitted <==

----- Start of picture text -----

Year ended December 31, 2025 Taiwan Asia Total
At a point in time
Sales of goods
-
Broadband network application products $ 1,732,201 $ $ 1,732,201
Smart home IoT products 1,604,967 10,394 1,615,361
Others 165,831 25,726 191,557
Sales of services 115,852 - 115,852
$ 3,618,851 $ 36,120 $ 3,654,971
Year ended December 31, 2024 Taiwan Asia Total
At a point in time
Sales of goods
-
Broadband network application products $ 1,481,096 $ 1,481,096
Smart home IoT products 892,406 82,205 974,611
Others 19,459 8,395 27,854
Sales of services 61,976 12,777 74,753
$ 2,454,937 $ 103,377 $ 2,558,314
----- End of picture text -----

B. Contract liabilities

The Group has recognised the following revenue-related contract liabilities:

Contract liabilities	December31,2025 December 31, 2024 295,711 $ 390,396 $	January1,2024
		133,383 $

The contract liability balances at the beginning of 2025 and 2024 amounting to $329,312 and $29,236 were recognised as operating revenue for the years ended December 31, 2025 and 2024, respectively.

(15) Interest income

Interest income

YearendedDecember31	YearendedDecember31
2025 28,464 $	2024
	32,714 $

~40~

(16) Other income

	Yearended	December31	December31
	2025		2024
Dividend income	1,033 $	$	1,231
Advance receipts and payables overdue by more
than two years reclassified as other income	34,193		-
Other income	10,763		5,960
	45,989 $	$	7,191

(17) Other gains and losses

		YearendedDecember31	YearendedDecember31	YearendedDecember31	YearendedDecember31
		2025			2024
Loss on disposals of property, plant and equipment	231) ($		($		159)
Net currency exchange gain		49,422			64,632
Net (loss) gain on financial assets or liabilities at
fair value through profit or loss - derivatives	(	28,560)			12,646
Net loss on financial assets or liabilities at
fair value through profit or loss - others	(	11,835)	(		15,660)
Others	(	716)	(		309)
		8,080 $		$	61,150

(18) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation Amortisation on intangible assets Employee benefit expense Depreciation Amortisation on intangible assets	YearendedDecember31,		2025
	Cost Expenses 304,611 $ 205,898 $ 67,768 12,763 405 2,333 YearendedDecember31,		Total
			510,509 $ 80,531 2,738 2024
	Cost 198,353 $ 77,299 96	Expenses 206,362 $ 14,490 2,197	Total
			404,715 $ 91,789 2,293

~41~

(19) Employee benefit expense

Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses	Cost Expenses 274,712 $ 177,557 $ 5,622 12,419 12,146 8,316 12,131 7,606 304,611 $ 205,898 $ YearendedDecember31, Cost Expenses 170,620 $ 176,355 $ 3,181 13,059 15,913 9,564 8,639 7,384 198,353 $ 206,362 $ YearendedDecember31,	Total 2025
		452,269 $ 18,041 20,462 19,737
		510,509 $
		Total 2024
		346,975 $ 16,240 25,477 16,023
		404,715 $

• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 12% for employees’ compensation and shall not be higher than 1.5% for directors’ remuneration.

• B. For the years ended December 31, 2025 and 2024, employees’ compensation was accrued at $20,270 and $14,951, respectively; directors’ remuneration was accrued at $1,672 and $1,238, respectively. The aforementioned amounts were recognised in salary expenses.

• The employees’ compensation and directors’ remuneration were estimated and accrued based on 12% and 1% of distributable profit for the year ended December 31, 2025, respectively. The employees’ compensation and directors’ remuneration resolved by the Board of Directors on March 3, 2026 were $20,270 and $1,672, respectively, and the employees’ compensation will be distributed in the form of cash.

• C. For 2024, the employees’ compensation and directors’ remuneration resolved by the Board of Directors amounted to $14,943 and $1,245, respectively. The difference between the amounts resolved by the Board of Directors and the amounts recognised in the 2024 financial statements had been adjusted in the profit or loss of 2025.

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

~42~

(20) Income tax

A. Components of income tax expense

ome tax Components of income tax expense
			YearendedDecember31
			2025		2024
Current tax:
Current tax on profits for the year		$	34,090	$	10,323
Tax on undistributed earnings			2,729		-
Prior year income under estimation			7,737		-
Total current tax			44,556		10,323
Deferred tax:
Origination and reversal of temporary differences	(		1,280)		15,620
Income tax expense		$	43,276	$	25,943

B. Reconciliation between income tax expense and accounting profit

			Year ended December 31	Year ended December 31	Year ended December 31	Year ended December 31
			2025			2024
Tax calculated based on profit before tax
and statutory tax rate		$	40,895		$	27,194
Effect from items adjusted in accordance
with tax regulation	(		460)			7,682
Temporary differences not recognised as
deferred tax	(		7,625)	(		14,922)
Taxable loss not recognised as deferred tax assets			-			5,989
Prior year income tax under estimation			7,737			-
Tax on undistributed earnings			2,729			-
Income tax expense		$	43,276		$	25,943

~43~

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

						2025
						Recognised in
			AtJanuary1			profitor loss		At	December31
Deferred tax assets:
Unrealised loss on valuation of
financial assets		$	-		$	1,502		$	1,502
Allowance for doubtful
accounts in excess of tax limit			853			777			1,630
Unrealised pension contribution			56	(		56)			-
			909			2,223			3,132
Deferred tax liabilities:
Unrealised exchange gain	(		3,510)	(		1,559)	(		5,069)
Unrealised gain on valuation of
financial assets	(		363)			363			-
Gains on investments in foreign
investees accounted for using
the equity method	(		253)			253			-
	(		4,126)	(		943)	(		5,069)
	($		3,217)		$	1,280	($		1,937)
						2024
						Recognised in
			AtJanuary1			profitor loss		At	December31
Deferred tax assets:
Unrealised exchange loss		$	7,082	($		7,082)		$	-
Unrealised loss on valuation of
financial assets			2,086	(		2,086)			-
Allowance for doubtful
accounts in excess of tax limit			3,432	(		2,579)			853
Unrealised pension contribution			56			-			56
			12,656	(		11,747)			909
Deferred tax liabilities:
Unrealised exchange gain			-	(		3,510)	(		3,510)
Unrealised gain on valuation of
financial assets			-	(		363)	(		363)
Gains on investments in foreign
investees accounted for using
the equity method	(		253)			-	(		253)
	(		253)	(		3,873)	(		4,126)
		$	12,403	($		15,620)	($		3,217)

~44~

• D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

follows:
Amount filed/ Year incurred assessed 2024 26,015 $ Amount filed/ Year incurred assessed 2024 29,947 $	Unrecognised deferred Unusedamount tax assets 26,015 $ 26,015 $ Unrecognised deferred Unused amount taxassets 29,947 $ 29,947 $ December31,2025 December31,2024	Expiry year 2034 Expiry year
		2034

• E. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2025 and 2024, the amounts of temporary differences unrecognised as deferred tax liabilities were $347,941 and $309,815, respectively.

• F. The Company’s income tax returns through 2022 have been assessed and approved by the Tax Authority

(21) Earnings per share

Authority Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares - employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Year	endedDecember31,2025
	Amount after tax ( 123,498 $ - 123,498 $	Weighted average number of ordinary shares outstanding Earnings per share sharesin thousands) (indollars) 77,376 1.60 $ 428 77,804 1.59 $
			1.60 $
			1.59 $

~45~

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares - employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount after tax ( 92,779 $ - 92,779 $ Year	Weighted average number of ordinary shares outstanding Earnings per share sharesin thousands) (indollars) 77,096 1.20 $ 315 77,411 1.20 $ endedDecember31,2024

(22) Changes in liabilities from financing activities

						2025
			Short-term
			borrowings		Leaseliabilities				Total
At January 1		$	169,205		$	15,149		$	184,354
Changes in cash flow from financing
activities	(		20,567)	(		8,873)	(		29,440)
Changes in other non-cash items			-			62			62
Impact of changes in foreign exchange rate	(		638)			-	(		638)
At December 31		$	148,000		$	6,338		$	154,338
						2024
			Short-term
			borrowings		Leaseliabilities				Total
At January 1		$	432,000		$	36,837		$	468,837
Changes in cash flow from financing
activities	(		262,887)	(		21,734)	(		284,621)
Changes in other non-cash items			-	(		153)	(		153)
Impact of changes in foreign exchange rate			92			199			291
At December 31		$	169,205		$	15,149		$	184,354

~46~

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The parent company of the Group is Chicony Electronics Co., Ltd.

(2) Names of related parties and relationship

Names of related parties Relationship with the Company Chicony Electronics Co., Ltd. Parent company Chicony Power Technology Co., Ltd. Equity controlled by the same parent company Chicony Electronics (Suzhou) Co., Ltd. Equity controlled by the same parent company Chicony Power Technology (DongGuan) Co., Ltd. (CPDG) Equity controlled by the same parent company Chicony America Inc. (CAI) Equity controlled by the same parent company Chicony Overseas Inc. (COI) Equity controlled by the same parent company Chicony Electronics (Thailand) Co., Ltd. (CET) Equity controlled by the same parent company Chicony Power Technology (Thailand) Co.,Ltd (CPTH) Equity controlled by the same parent company

(3) Significant related party transactions

A. Operating revenue

nificant related party transactions Operating revenue
		Yearended	December31
		2025		2024
Sales of goods:
Equity controlled by the same parent company	$	24,323	$	82,205
Sales of services:
Parent company	$	341	$	391
Equity controlled by the same parent company		11,864		20,616
	$	12,205	$	21,007
The terms of the sales to related parties were the	same as those to third parties.
Receivables from related parties
	December31,2025		December31,2024
Accounts receivable:
CAI	$	-	$	77,353
Chicony Electronics (Suzhou) Co., Ltd.		4,181		-
Equity controlled by the same parent company		470		5,978
		4,651		83,331
Other receivables:
Parent company		-		527
	$	4,651	$	83,858

B. Receivables from related parties

The accounts receivable from related parties arise mainly from sale transactions. The accounts receivable are unsecured in nature and bear no interest. Other receivables arise mainly from payments on behalf of related parties.

~47~

C. Payables to related parties:

Other payables: Parent company Chicony Electronics (Suzhou) Co., Ltd. CET Equity controlled by the same parent company	December31,2025 December31,2024 1,878 $ 1,025 $ 14,409 98,574 2,362 - - 1,774 18,649 $ 101,373 $

Other payables mainly pertain to management service expense, collections on behalf of related parties, operating leases, payments on behalf of related parties.

D. Purchase of services and other expenses

Purchase of services and other expenses
Parent company Equity controlled by the same parent company	2025 2024 3,524 $ 2,297 $ 29,240 21,395 32,764 $ 23,692 $ YearendedDecember31
		2,297 $ 21,395
		23,692 $

Purchases of services pertain to the expenses arising from management service rendered by the above related parties to the Group.

• －

• E. Lease transactions lessee

• (a) As of December 31, 2025, the main lease contracts signed between the Group and related parties are as follows:

Lessor Parent company Equity controlled by the same parent company Equity controlled by the same parent company Equity controlled by the same parent company	Leasedassets Buildings and structures " " "	Rent payment and calculation Lease period $531 per month 2023.10.1~2026.9.30 CNY 234 per month Less than one year THB 1,193 per month 2021.1.15~2024.12.31 THB 1,923 per month Less than one year

• (b) The Group’s rental expenses arising from leases in offices and plants from related parties are as follows:

as follows:
Equity controlled by the same parent company	YearendedDecember31
	2025 33,895 $	2024
		14,078 $

~48~

• (c) Lease liability

i. Outstanding balance

Parent company

December	31, 2025	December	31,2024
$	4,747	$	10,865

ii. Interest expense

Parent company Equity controlled by the same parent company

==> picture [217 x 90] intentionally omitted <==

----- Start of picture text -----

Year ended December 31
2025 2024
$ 137 $ 240
- 70
$ 137 $ 310
----- End of picture text -----

(4) Key management compensation

Salaries and other short-term employee benefits Post-employment benefits

Year ended December 31	Year ended December 31
2025 13,068 $ 268 13,336 $	2024
	12,945 $ 235
	13,180 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset December 31, 2025 December 31, 2024 Purpose Bank deposits Guarantee for acceptance (shown as ‘other current $ 735 $ 4,705 bill assets’) Refundable deposits Deposits and guarantee (shown as ‘other for plant and operating non-current assets’) 1,134 1,267 leases $ 1,869 $ 5,972

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

• (1) As of December 31, 2025, the guarantee notes issued by the Group for bank borrowings and export bill negotiations amounted to $2,600,440.

• (2) The Group’s subsidiary, XAVi Technologies (Suzhou) Co., Ltd., is currently involved in a civil compensation lawsuit filed by a supplier arising from a procurement dispute. As the matter remains under dispute, the Group currently assesses that the lawsuit is unlikely to have a material impact on its financial position or operating results. As of March 3, 2026, the Group estimates that it is improbable to incur any significant liabilities and accordingly has not recognized any contingent liabilities in connection with this lawsuit.

~49~

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

On March 3 , 2026, the Board of Directors during its meeting resolved the distribution of 2025 earnings and proposed the distribution of employees’ compensation and directors’ remuneration. The information is provided in Notes 6(13) and 6(19).

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital.

(2) Financial instruments

A. Financial instruments by category

ucture to reduce the cost of capital. ancial instruments Financial instruments by category
Financial assets Financial assets mandatorily measured at fair value through profit or loss Financial assets at amortised cost Cash and cash equivalents Accounts receivable (including related parties) Other receivables (including related parties) Guarantee deposits paid Other current assets Financial liabilities Financial liabilities mandatorily measured at fair value through profit or loss Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities	December31,2025 23,032 $ 701,848 949,275 238,556 1,134 735 1,914,580 $ 8,084 $ 148,000 - 874,583 499,494 6,338 1,536,499 $	December31,2024
		35,783 $ 881,229 791,964 225,170 1,267 4,705
		1,940,118 $ 1,100 $ 169,205 4,000 698,641 584,967 15,149
		1,473,062 $

B. Financial risk management policies

(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial position and financial performance.

~50~

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

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

  • Exchange rate risk

  • i. The Group operates internationally and is exposed to exchange rate risk arising from various currencies, primarily with respect to the USD, CNY and THB. Foreign exchange rate risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

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

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:CNY Financial liabilities Monetary items USD:NTD USD:CNY USD:THB	December31,2025	December31,2025
	Foreign currency amount (In thousands) $ 56,009 5,232 $ 26,961 2,194 33,058	Exchangerate 31.4200 6.9900 31.4200 6.9900 31.5430	Book value (NTD)
			$ 1,759,803 164,389 $ 847,115 68,935 1,038,682

~51~

			December31,2024
		Foreign
	currency amount			Book value
	(In thousands)		Exchangerate	(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	58,932	32.7900 $ 1,932,380
USD:CNY		4,435	7.3225	145,424
USD:THB		3,465	34.3171	113,617
Financial liabilities
Monetary items
USD:NTD	$	27,113	32.7900 $ 889,035
USD:CNY		3,140	7.3225	102,961
USD:THB		25,011	34.3171	820,111

• iii. The total exchange gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024 amounted to $49,422 and $64,632, respectively.

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

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:CNY Financial liabilities Monetary items USD:NTD USD:CNY USD:THB	Year ended December 31,	2025
	Degree of Effect on variation profitor loss 1% $ 17,598 1% 1,644 1% $ 8,471 1% 689 1% 10,387 Sensitivityanalysis	Effect on other comprehensive income
		$ - - $ - - -

~52~

	Year	ended	December31,2024
		Sensitivityanalysis
			Effect on other
	Degree of	Effect on comprehensive
	variation	profitor loss		income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	1%	$	19,324 $	-
USD:CNY	1%		1,454	-
USD:THB	1%		1,136	-
Financial liabilities
Monetary items
USD:NTD	1%	$	8,890 $	-
USD:CNY	1%		1,030	-
USD:THB	1%		8,201	-

Price risk

• i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $149 and $347, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss.

Cash flow and fair value interest rate risk

The Group’s main interest rate risk arises from short-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. During the years ended December 31, 2025 and 2024, the Group’s borrowings at variable rates were denominated in NTD.

As of December 31, 2025 and 2024, if the borrowing interest rate had increased/decreased by 1% with all other variables held constant, the effect on interest expenses for the years ended December 31, 2025 and 2024 would be $1,480 and $1,692, respectively.

~53~

(b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at fair value through profit or loss.

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

• iii. The Group manages credit risk of cash in banks and other financial instruments based on the Group’s credit policy. Banks with good credit and financial institutions with investment-grade credit ratings are accepted as counterparties.

• iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• v. The Group classifies customer’s accounts receivable in accordance with customer types. The Group applies the simplified approach using a provision matrix to estimate the expected credit loss.

• vi. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

• vii. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

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

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

~54~

viii. The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable (including related parties). On December 31, 2025 and 2024, the provision matrix is as follows:

December 31, 2025 Individual Not past due Up to 30 days past due 31 ~ 60 days past due 61 ~ 90 days past due Over 90 days past due Total December 31, 2024 Individual Not past due Up to 30 days past due 31 ~ 60 days past due 61 ~ 90 days past due Over 90 days past due Total	Expectedlossrate 100% 0%~1% 3%~10% 3%~35% 3%~35% 100% Expectedlossrate 100% 0%~1% 2%~10% 3%~35% 3%~35% 100%	Totalbookvalue 6,456 $ 763,779 111,279 26,463 55,428 - 963,405 $ Totalbookvalue 7,029 $ 588,215 208,187 - - - 803,431 $	Lossallowance
			6,456 $ 228 3,352 1,323 2,771 -
			14,130 $
			Lossallowance
			7,029 $ 151 4,287 - - -
			11,467 $

ix. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable is as follows:

At January 1 Provision for impairment loss Reversal of impairment loss Effect of foreign exchange At December 31		2025 Accounts receivable		2024 Accounts receivable
		11,467 $ 2,663 - - 14,130 $	20,567 $ - 9,372) ( 272 11,467 $

~55~

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by the Group’s finance and accounting department. The Group’s finance and accounting department monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable external regulatory or legal requirements.

• ii. Group finance and accounting department invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. As at December 31, 2025 and 2024, the Group held money market position of $717,644 and $911,229, respectively, that are expected to readily generate cash inflows for managing liquidity risk.

• iii. The Group has the following undrawn borrowing facilities:

==> picture [418 x 32] intentionally omitted <==

• iv. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows:

December 31, 2025 Non-derivative financial liabilities Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Derivative financial liabilities Financial liabilities at fair value through profit or loss	Lessthan 1year Over 1 year 148,251 $ - $ 874,583 - 499,494 - 6,381 - 8,084 $ - $

~56~

December 31, 2024		Lessthan 1year		Over 1year
Non-derivative financial liabilities
Short-term borrowings	$	169,809	$	-
Notes receivable		4,000		-
Accounts payable (including related parties)		698,641		-
Other payables (including related parties)		584,967		-
Lease liabilities		9,049		6,330
Derivative financial liabilities
Financial liabilities at fair value
through profit or loss	$	1,100	$	-

(3) Fair value information

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

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks, beneficiary certificates and convertible bonds is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in most derivative instruments is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability.

• B. The carrying amounts of the Group’s cash and cash equivalents, accounts receivable (including related parties), other receivables (including related parties), short-term borrowings, notes payable, accounts payable (including related parties) and other payables (including related parties) are approximate to their fair values.

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

~57~

(a) The related information on the nature of the assets and liabilities is as follows:

December 31, 2025 Assets Recurring fair value measurements Financial assets mandatorily measured at fair value through profit or loss Equity securities Debt securities Beneficiary certificates Non-hedging derivatives Forward foreign exchange contracts Liabilities Recurring fair value measurements Financial liabilities mandatorily measured at fair value through profit or loss Non-hedging derivatives Forward foreign exchange contracts December 31, 2024 Assets Recurring fair value measurements Financial assets mandatorily measured at fair value through profit or loss Equity securities Beneficiary certificates Non-hedging derivatives Forward foreign exchange contracts Foreign exchange swap contracts Liabilities Recurring fair value measurements Financial liabilities mandatorily measured at fair value through profit or loss Non-hedging derivatives Forward foreign exchange contracts	Level 1 16,391 $ 98 5,970 - 22,459 $ - $ Level 1 28,513 $ 4,590 - - 33,103 $ - $	Level 2 - $ - - 573 573 $ 8,084 $ Level 2 - $ - 2,432 248 2,680 $ 1,100 $	Level3 - $ - - - - $ - $ Level3 - $ - - - - $ - $	Total
				16,391 $ 98 5,970 573
				23,032 $
				8,084 $
				Total
				28,513 $ 4,590 2,432 248
				35,783 $
				1,100 $

~58~

• (b) The methods and assumptions the Group used to measure fair value are as follows:

  • i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

  • Listed shares Open-end fund Convertible bonds

  • Market quoted price Closing price Net asset value Closing price

  • ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes.

• D. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

• E. For the years ended December 31, 2025 and 2024, there was no transfer into or out from Level 3.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Refer to table 1.

• B. Provision of endorsements and guarantees to others: Refer to table 2.

• C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Refer to table 3.

• D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 4.

• E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 5.

• F. Significant inter-company transactions during the reporting periods: Refer to table 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 7.

(3) Information on investments in Mainland China

• A. Basic information: Refer to table 8.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Refer to Note 13(1).

14. SEGMENT INFORMATION

(1) General information

The chief operating decision-maker operates business from a geographic perspective; geographically, the Group currently focuses on wholesale in Taiwan and Asia.

The Group's organisation, basis of department segmentation and principles for measuring segment information for the year were not significantly changed.

~59~

(2) Measurement of segment information

The Group’s chief operating decision-maker assessed the performance of the operating segment based on the segment revenue and segment net operating profit in the consolidated financial report after adjustment. The accounting policies of the operating segments are in agreement with the significant accounting policies summarised in Note 4.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

Revenue from external customers Segment profit Segment profit includes Depreciation and amortisation Income tax expense Revenue from external customers Segment profit ( Segment profit includes Depreciation and amortisation Income tax expense	Taiwan Asia Others 3,618,851 $ 36,120 $ - $ 93,799 $ 4,479) ($ 1,286) ($ 13,489 $ 69,780 $ - $ 21,807 $ 21,469 $ - $ Year ended December 31, 2025 Taiwan Asia Others 2,454,937 $ 103,377 $ - $ 44,381) $ 71,671 $ 2,637) ($ 14,466 $ 79,616 $ - $ 15,620 $ 10,323 $ - $ Year ended December 31,2024	Total 3,654,971 $ 88,034 $ 83,269 $ 43,276 $ Total 2,558,314 $ 24,653 $ 94,082 $ 25,943 $

(4) Reconciliation for segment income

• A. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

• B. A reconciliation of reportable segment profit or loss to the profit before tax for the years ended December 31, 2025 and 2024 is provided as follows:

Reportable segments profit Total non-operating income and expenses Profit before tax	YearendedDecember31	YearendedDecember31
	2025 88,034 $ 78,740 166,774 $	2024
		24,653 $ 94,069
		118,722 $

~60~

(5) Information on products and services

Revenue from third parties is as follows:

nformation on products and services Revenue from third parties is as follows:
Broadband network application products Smart home IoT products Others	YearendedDecember31
	2025 1,732,201 $ 1,615,361 307,409 3,654,971 $	2024
		1,481,096 $ 974,611 102,607
		2,558,314 $

(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

Taiwan Asia	Revenue Non-current assets Revenue Non-current assets 3,618,851 $ 15,282 $ 2,454,937 $ 21,769 $ 36,120 215,954 103,377 226,778 3,654,971 $ 231,236 $ 2,558,314 $ 248,547 $ Year ended December 31, 2025 YearendedDecember31,2024	Revenue Non-current assets Revenue Non-current assets 3,618,851 $ 15,282 $ 2,454,937 $ 21,769 $ 36,120 215,954 103,377 226,778 3,654,971 $ 231,236 $ 2,558,314 $ 248,547 $ Year ended December 31, 2025 YearendedDecember31,2024
	Revenue 3,618,851 $ 36,120 3,654,971 $

The Group’s geographical revenue information is determined based on the area collecting the accounts receivable.

Non-current assets pertain to property, plant and equipment, right-of-use assets, intangible assets and other non-current assets, excluding financial instruments and deferred tax assets.

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2025 and 2024 is as follows:

ollows:
A customer B customer C customer D customer E customer	Revenue % of Net Revenue 1,103,175 $ 30% 813,355 22% 453,187 12% 382,581 10% 379,025 10% YearendedDecember31,2025	Revenue % of Net Revenue 911,331 $ 36% 211,078 8% 412,842 16% 331,653 13% 152,989 6% YearendedDecember31,2024
	Revenue 1,103,175 $ 813,355 453,187 382,581 379,025	Revenue 911,331 $ 211,078 412,842 331,653 152,989
			36% 8% 16% 13% 6%

~61~

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Loans to others

Year ended December 31, 2025

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance for the period (Note1)	Ending balance (Note2)	Actual amount drawndown	Interest rate range	Nature of loan (Note3)	Amount of transactions with the borrower (Note4)	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party (Note5)(Note6)	Ceiling on total loans granted (Note5)(Note6)	Note
													Name	Value
0 1 2	The Company Directmax Systemax	XAVi Thailand The Company The Company	Other receivables Other receivables Other receivables	Yes Yes Yes	328,350 $ 99,600 232,400	251,360 $ 75,408 219,940	188,520 $ 69,124 219,940	2% 0% 0%	1 2 2	2,712,322 $ - -	- Working capital Working capital	- - -	None None None	- - -	645,531 $ 14,954 USD 8,008 USD	1,291,063 $ 14,954 USD 8,008 USD	- - -

Note 1: The accumulated maximum outstanding balance of loans to others as of the reporting month of the current period.

• Note 2: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in accordance with Article 14, Item 1 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies” should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the board of directors of a public company has authorized the chairman to loan funds in installments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”, the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the board of directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration they could be loaned again thereafter.

• Note 3: The numbers filled in the column of ‘Nature of loan’ are as follows:

• Business transaction.

2. Short-term financing.

Note 4: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current year.

Note 5: In accordance with the financing procedures of the Company, the ceiling on total loans granted is the Company’s net asset value based on the latest audited or reviewed financial statements, and

1. The total financing amount to any individual party should not exceed 50% of the Company’s net asset value and the amount of sales/purchases during the year for the purpose of business transactions.

2. The total financing amount to any individual party should not exceed 40% of the subsidiary’s net asset value for the purpose of short-term financing.

3. For loans granted between foreign companies whose voting rights are 100% directly or indirectly held by the Company or loans granted to the Company by foreign companies whose voting rights are 100% directly or indirectly held by the Company, the loan amount is not subject to 40% of the creditor’s net asset value based on the latest audited or reviewed financial statements. However, total loan amount should not exceed the creditor’s net asset value based on the latest audited or reviewed financial statements. The laon period should not exceed three years. The restrictions on loans to any single party are as follows:

4. (1) The limit on loans granted to a single party for the purpose of business transactions is the creditor’s net asset value based on the latest audited or reviewed financial statements,

5. or the higher of sales or purchase amount with the creditor during the most recent year.

6. (2) The limit on loans granted to a single party for the purpose of short-term financing is the creditor’s net asset value based on the latest audited or reviewed financial statements.

7. Except for point 3, the loan period should not exceed one year.

8. Note 6: In accordance with the financing procedures of the subsidiary, the ceiling on total loans granted by the subsidiary is the subsidiary’s net asset value based on the latest audited or reviewed financial statements, and

9. The ceiling on total loans granted or limit on loans granted to a single party for the purpose of short-term financing is 40% of the subsidiary’s net asset value.

10. The limit on loans granted to a single party for the purpose of business transactions is 50% of the subsidiary’s net asset value and the higher of sales or purchase amount with the subsidiary during the most recent year.

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Provision of endorsements and guarantees to others

Year ended December 31, 2025

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

No. （Note1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount for the year ended December31,2025	Outstanding endorsement/ guarantee amount at December31,2025	Actual amount drawndown	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of guarantees provided （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China Footnote
		Company name	Relationship with the endorser/ guarantor （Note2）
0	The Company	XAVi Suzhou	2	322,766 $	66,400 $	62,840 $	- $	- $	4.87%	645,531 $	Y	N	Y -

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is as follows:

• (1) Having business relationship.

• (2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.

• (4) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.

• (5) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.

• (6) Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

• Note 3: Limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the “Procedures for Provision of Endorsements and Guarantees” are as follows:

• (1) The Company’s limit on total amount of endorsements/ guarantees shall not exceed 50% of net assets in latest audited or reviewed financial statements of the Company, and limit on endorsements/guarantees provided for a single party shall not exceed 50% of the total amount of endorsements/ guarantees.

• (2) The subsidiary’s limit on total amount of endorsements/ guarantees shall not exceed the net assets in latest audited or reviewed financial statements of the subsidiary, and limit on endorsements/guarantees provided for a single party shall not exceed 50% of the total amount of endorsements/ guarantees.

• (3) Limit on the total endorsements/guarantees of the Company and its subsidiaries as a whole shall not exceed 50% of net assets in latest audited or reviewed financial statements of the Company, and limit on endorsements/guarantees provided for a single party shall not exceed 50% of the total amount of endorsements/ guarantees.

• (4) In addition to the limitations mentioned in the first three items, for the companies having business relationship with the endorser/guarantor, endorsements/guarantees to any single party should not exceed the higher amount of sales/purchase during the year for the purpose of business.

• (5) Limit on the total endorsements/guarantees between companies that the Company directly or indirectly held 90% of voting shares shall not exceed 10% of net assets in latest audited or reviewed financial statements of the Company. However, the endorsements/guarantees between companies that the Company directly or indirectly held 100% of voting shares were not subjected.

• (6) In addition to the limitations mentioned in the first five items, endorsements/ guarantees provided by the Company or its subsidiaries to the company whose net asset was lower than one half of its paid-in capital, the total amount of endorsements/guarantees shall not exceed the net assets in latest audited or reviewed financial statements of the Company and its subsidiaries.

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2025

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		EndingBalance	EndingBalance		Footnote
				Number of shares/units	Book value	Ownership (%)	Fair value
The Company	Common stock Laster Tech Corporation Ltd.	None	Financial assets at fair value through profit or loss - current	855,929	16,391 $	0.71	16,391 $	-

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

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

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to thirdparty	Differences in transaction terms compared to thirdparty	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit Price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
The Company The Company XAVi Suzhou XAVi Thailand	XAVi Suzhou XAVi Thailand The Company The Company	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company	Purchases Purchases Sales Sales	508,163 $ 2,712,322 508,163) ( 2,712,322) (	16 84 92 99	45~180 days after monthly billings 45~180 days after monthly billings 45~180 days after monthly billings 45~180 days after monthly billings	Note 1 Note 1 Note 2 Note 2	45~180 days after monthly billings 45~180 days after monthly billings 45~180 days after monthly billings 45~180 days after monthly billings	110,810) ($ - 110,810 -	100 - 88 -	- - - -

Note 1: The terms of the purchases from related parties were the same as those from third parties. Note 2: The terms of the sales to related parties were the same as those to third parties.

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

December 31, 2025

Table 5 Creditor	Counterparty	Relationship with the counterparty	Endingbalance	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the Allowance for balance sheet date doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)	Amount collected subsequent to the Allowance for balance sheet date doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Accounts receivable	The Company Directmax The Company XAVi Thailand	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company	110,810 $ 121,957 $ 219,940 $ 188,520	4.26 - - -	- $ - $ - $ -	- - - -	- $ - $ - $ -	- $ - $ - $ -
XAVi Suzhou Other receivables
XAVi Overseas Financing funds receivable
Systemax The Company

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Significant inter-company transactions during the reporting period Year ended December 31, 2025

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
1 2 1	XAVi Suzhou XAVi Thailand XAVi Suzhou	The Company The Company The Company	2 2 2	Sales revenue Sales revenue Accounts receivable	508,163 $ 2,712,322 110,810	Note 4 Note 4 Note 4	13.90 74.21 3.48

Other transactions between the parent company and subsidiaries not exceeding 1% of the consolidated total revenue or total assets are not disclosed. Those transactions are shown in other assets and revenue.

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

1. Parent company is ‘0’.

2. The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

1. Parent company to subsidiary.

2. Subsidiary to parent company.

3. Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts. Note 4: The terms of the sales to related parties were the same as those to third parties.

Information on investees (not including investees in Mainland China) Year ended December 31, 2025

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2025	as at December 31,2025	Net profit (loss) of the investee for the year ended December 31,2025	Investment income (loss) recognised by the Company for the year ended December 31,2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
The Company The Company Directmax International Ltd. Directmax International Ltd.	Directmax International Ltd. XAVi Technologies (Thailand) Co.,Ltd XAVi Overseas Ltd. Systemax Development Ltd.	BVI Thailand BVI BVI	Overseas investment Manufacturing, puchases, and sales of network communication products Overseas investment Purchases and sales of network communication products	303,361 $ 75,377 324,942 7,849	332,791 $ 75,377 324,942 7,849	6,750,000 7,999,997 7,500,000 250,000	100 100 100 100	469,848 $ 256,739 122,014 251,599	20,233 $ 17,893 - 7,207	20,233 $ 17,893 - -	- - - -

XAVI TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

Year ended December 31, 2025

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Mainbusinessactivities	Paid-incapital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2025	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2025	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025(Note2)	Book value of investments in Mainland China as of December 31,2025	Accumulated amount of investment income remitted back to Taiwan as of December 31,2025	Footnote
					Remitted to Mainland China	Remitted back toTaiwan
XAVi Technologies (Suzhou) Co., Ltd.	Manufacturing, purchases and sales of network communication products	295,512 $	Note 1	324,942 $	- $	29,430) ($	295,512 $	16,045 $	100	16,045 $	165,376 $	- $	-

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
XAVi Technologies Corporation	$ 295,512 (USD 9,000 thousand)	$ 295,512 (USD 9,000 thousand)	$ 774,638

Note 1: Investing in the investee in Mainland China through a wholly-owned subsidiary, Directmax International Ltd. Note 2: Investment income (loss) was recognised based on the financial statements audited or reviewed by the parent company’s CPA. Note 3: The numbers in this table are expressed in New Taiwan Dollars.