Interim report
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Hiwin Technologies Corporation and Subsidiaries Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 and Independent Auditors’ Review Report
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- 2 - Qualified Conclusion Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2025 and 2024, its consolidated financial performance for the three months ended September 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The engagement partners on the reviews resulting in this independent auditors’ review report are Li-Tung Wu and Hsiao-Fang Yen. Deloitte & Touche Taipei, Taiwan Republic of China November 11, 2025 Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.
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- 3 - HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) September 30, 2025 December 31, 2024 (After Retrospective Adjustment) September 30, 2024 ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents (Note 6) $ 6,829,701 13 $ 7,353,929 14 $ 6,419,570 12 Financial assets at fair value through profit or loss - current (Note 7) 221 - 112 - 3,442 - Notes receivable from unrelated parties, net (Notes 9 and 20) 499,945 1 569,416 1 566,088 1 Notes receivable from related parties, net (Notes 9, 20 and 28) 1,093 - 1,091 - 470 - Trade receivables from unrelated parties, net (Notes 9 and 20) 3,348,804 6 3,896,076 7 3,433,345 7 Trade receivables from related parties, net (Notes 9, 20 and 28) 556 - 810 - 20,494 - Inventories (Note 10) 7,536,033 14 7,407,335 14 7,672,363 15 Other current assets (Notes 6, 28 and 29) 843,396 2 754,666 1 708,156 1 Total current assets 19,059,749 36 19,983,435 37 18,823,928 36 NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 8) 1,254,142 2 1,601,429 3 1,115,500 2 Investments accounted for using the equity method (Note 12) 351,487 1 305,995 1 389,067 1 Property, plant and equipment (Notes 13, 28 and 29) 29,390,897 55 29,449,620 54 29,177,943 55 Right-of-use assets (Notes 14, 28 and 29) 632,020 1 710,880 1 819,019 2 Goodwill (Note 24) 293,172 - 291,375 1 256,163 - Deferred tax assets (Note 4) 446,426 1 460,799 1 435,015 1 Prepayments for machinery and equipment (Note 15) 1,433,928 3 1,272,595 2 1,233,304 2 Refundable deposits (Note 28) 92,508 - 99,780 - 104,512 - Other non-current assets (Note 9) 302,100 1 259,032 - 288,934 1 Total non-current assets 34,196,680 64 34,451,505 63 33,819,457 64 TOTAL $ 53,256,429 100 $ 54,434,940 100 $ 52,643,385 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 16 and 28) $ 1,998,002 4 $ 1,397,394 3 $ 1,611,662 3 Financial liabilities at fair value through profit or loss - current (Note 7) 16,952 - 5,423 - 1,387 - Contract liabilities - current (Note 20) 59,313 - 139,507 - 126,748 - Notes payable 7,760 - 2,631 - 6,562 - Trade payables to unrelated parties 2,848,112 6 3,179,444 6 3,257,548 6 Trade payables to related parties (Note 28) 132,680 - 135,550 - 120,991 - Other payables (Notes 17 and 28) 1,620,556 3 1,866,050 4 1,651,026 3 Current tax liabilities (Note 4) 68,445 - 211,727 - 156,037 1 Lease liabilities - current (Notes 14 and 28) 98,086 - 101,258 - 119,118 - Current portion of long-term borrowings (Notes 16, 28 and 29) 1,177,274 2 1,067,434 2 606,233 1 Other current liabilities 225,614 1 215,618 - 192,812 1 Total current liabilities 8,252,794 16 8,322,036 15 7,850,124 15 NON-CURRENT LIABILITIES Long-term borrowings (Notes 16, 28 and 29) 6,632,834 12 7,562,662 14 6,829,871 13 Deferred tax liabilities (Note 4) 889,430 2 822,748 2 877,823 2 Lease liabilities - non-current (Notes 14 and 28) 405,284 1 470,373 1 558,928 1 Net defined benefit liabilities - non-current (Notes 4 and 18) 164,203 - 141,983 - 184,414 - Other non-current liabilities (Note 16) 34,997 - 41,000 - 15,728 - Total non-current liabilities 8,126,748 15 9,038,766 17 8,466,764 16 Total liabilities 16,379,542 31 17,360,802 32 16,316,888 31 EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION Ordinary shares 3,537,923 7 3,537,923 6 3,537,923 7 Capital surplus 7,479,735 14 7,479,735 14 7,479,735 14 Retained earnings Legal reserve 4,213,350 8 4,028,836 7 4,028,836 8 Unappropriated earnings 20,550,309 38 20,520,180 38 20,203,797 38 Other equity 1,032,395 2 1,362,373 3 968,863 2 Total equity attributable to owners of the Corporation 36,813,712 69 36,929,047 68 36,219,154 69 NON-CONTROLLING INTERESTS 63,175 - 145,091 - 107,343 - Total equity 36,876,887 69 37,074,138 68 36,326,497 69 TOTAL $ 53,256,429 100 $ 54,434,940 100 $ 52,643,385 100 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated November 11, 2025)
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- 4 - HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Amount % Amount % Amount % Amount % SALES (Notes 20 and 28) $ 5,995,331 100 $ 6,326,487 100 $ 17,759,602 100 $ 18,015,869 100 COST OF GOODS SOLD (Notes 10, 21 and 28) 4,280,579 71 4,382,424 69 12,540,620 71 12,534,443 70 GROSS PROFIT 1,714,752 29 1,944,063 31 5,218,982 29 5,481,426 30 OPERATING EXPENSES (Notes 21 and 28) Selling and marketing expenses 482,977 8 469,764 7 1,463,745 8 1,443,954 8 General and administrative expenses 566,050 10 550,858 9 1,673,769 10 1,597,794 8 Research and development expenses 255,179 4 238,908 4 753,602 4 699,135 4 Total operating expenses 1,304,206 22 1,259,530 20 3,891,116 22 3,740,883 20 PROFIT FROM OPERATIONS 410,546 7 684,533 11 1,327,866 7 1,740,543 10 NON-OPERATING INCOME AND EXPENSES Subsidized revenue (Note 16) 2,684 - 5,987 - 17,326 - 14,110 - Finance costs (Notes 21 and 28) (52,133) (1) (45,052) (1) (150,202) (1) (130,443) (1) Share of profit (loss) of associates accounted for using the equity method (Note 12) 6,812 - 9,574 - 16,335 - 31,437 - Interest income 16,759 - 17,097 - 61,360 - 67,362 - Other income (Note 28) 24,277 1 22,364 - 78,250 1 73,477 - Valuation gain (loss) on financial assets (liabilities) at fair value through profit or loss (46,797) (1) (5,282) - 3,555 - (37,854) - Other expenses (Notes 21 and 28) 963 - (3,716) - (3,001) - (15,191) - Loss on disposal of property, plant and equipment (8,077) - (19,143) - (11,941) - (33,578) - Net foreign exchange gain (loss) (Note 31) 218,025 4 123,707 2 (97,972) - 255,059 2 Total non-operating income and expenses 162,513 3 105,536 1 (86,290) - 224,379 1 PROFIT BEFORE INCOME TAX 573,059 10 790,069 12 1,241,576 7 1,964,922 11 INCOME TAX EXPENSE (Notes 4 and 22) 151,966 3 148,694 2 259,415 1 404,949 2 NET PROFIT FOR THE PERIOD 421,093 7 641,375 10 982,161 6 1,559,973 9 (Continued)
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- 5 - HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Amount % Amount % Amount % Amount % OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income $ (17,414) - $ 173,848 3 $ (345,754) (2) $ 279,299 2 Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations 342,839 5 118,610 2 17,202 - 321,795 2 Income tax relating to items that may be reclassified subsequently to profit or loss (Note 22) (67,516) (1) (23,747) (1) (1,606) - (64,414) (1) 275,323 4 94,863 1 15,596 - 257,381 1 Other comprehensive income (loss) for the period, net of income tax 257,909 4 268,711 4 (330,158) (2) 536,680 3 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD $ 679,002 1 1 $ 910,086 1 4 $ 652,003 4 $ 2,096,653 1 2 NET PROFIT (LOSS) ATTRIBUTABLE TO: Owners of the Corporation $ 445,852 7 $ 664,489 10 $ 1,063,886 6 $ 1,641,825 9 Non-controlling interests (24,759) - (23,114) - (81,725) - (81,852) - $ 421,093 7 $ 641,375 1 0 $ 982,161 6 $ 1,559,973 9 TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: Owners of the Corporation $ 703,647 12 $ 933,252 15 $ 733,908 4 $ 2,178,627 12 Non-controlling interests (24,645) (1) (23,166) (1) (81,905) - (81,974) - $ 679,002 1 1 $ 910,086 1 4 $ 652,003 4 $ 2,096,653 1 2 EARNINGS PER SHARE (Note 23) Basic $ 1.26 $ 1.88 $ 3.01 $ 4.64 Diluted $ 1.26 $ 1.87 $ 3.00 $ 4.63 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ review report dated November 11, 2025) (Concluded)
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- 6 - HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Dividends Per Share) Equity Attributable to Owners of the Corporation (Note 19) Other Equity Retained Earnings Exchange Differences on Translating the Financial Unrealized Gain (Loss) on Financial Assets at Fair Value Ordinary Shares Capital Surplus Legal Reserve Unappropriated Earnings (Notes 8 and 25) Statements of Foreign Operations Through Other Comprehensive Income Total Non-controlling Interests (Notes 11 and 25) Total Equity BALANCE ON JANUARY 1, 2024 $ 3,537,923 $ 7,479,735 $ 3,821,341 $ 19,767,009 $ (280,839) $ 672,855 $ 34,998,024 $ 116,301 $ 35,114,325 Appropriation of 2023 earnings Legal reserve - - 207,495 (207,495) - - - - - Cash dividends - NT$2.5 per share - - - (884,481) - - (884,481) - (884,481) - - 207,495 (1,091,976) - - (884,481) - (884,481) Changes in percentage of ownership interests in subsidiaries - - - (73,016) - - (73,016) 73,016 - Disposal of investments in equity instruments at fair value through other comprehensive income - - - (40,045) - 40,045 - - - Net profit (loss) for the nine months ended September 30, 2024 - - - 1,641,825 - - 1,641,825 (81,852) 1,559,973 Other comprehensive income (loss) for the nine months ended September 30, 2024, net of income tax - - - - 257,503 279,299 536,802 (122) 536,680 Total comprehensive income (loss) for the nine months ended September 30, 2024 - - - 1,641,825 257,503 279,299 2,178,627 (81,974) 2,096,653 BALANCE ON SEPTEMBER 30, 2024 $ 3,537,923 $ 7,479,735 $ 4,028,836 $ 20,203,797 $ (23,336) $ 992,199 $ 36,219,154 $ 107,343 $ 36,326,497 BALANCE ON JANUARY 1, 2025 $ 3,537,923 $ 7,479,735 $ 4,028,836 $ 20,520,180 $ (115,755) $ 1,478,128 $ 36,929,047 $ 145,091 $ 37,074,138 Appropriation of 2024 earnings Legal reserve - - 184,514 (184,514) - - - - - Cash dividends - NT$2.4 per share - - - (849,101) - - (849,101) - (849,101) - - 184,514 (1,033,615) - - (849,101) - (849,101) Difference between consideration received or paid and the carrying amount of the subsidiaries' net assets during actual disposal or acquisition - - - (142) - - (142) (11) (153) Net profit (loss) for the nine months ended September 30, 2025 - - - 1,063,886 - - 1,063,886 (81,725) 982,161 Other comprehensive income (loss) for the nine months ended September 30, 2025, net of income tax - - - - 15,776 (345,754) (329,978) (180) (330,158) Total comprehensive income (loss) for the nine months ended September 30, 2025 - - - 1,063,886 15,776 (345,754) 733,908 (81,905) 652,003 BALANCE ON SEPTEMBER 30, 2025 $ 3,537,923 $ 7,479,735 $ 4,213,350 $ 20,550,309 $ (99,979) $ 1,132,374 $ 36,813,712 $ 63,175 $ 36,876,887 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ review report dated November 11, 2025)
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- 7 - HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars) For the Nine Months Ended September 30 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax $ 1,241,576 $ 1,964,922 Adjustments for: Depreciation expense 1,711,005 1,697,640 Amortization expense 40,691 46,589 Expected credit loss recognized on trade receivables 1,746 1,080 Net loss (gain) on fair value changes of financial assets and liabilities at fair value through profit or loss 16,731 (2,055) Finance costs 150,202 130,443 Interest income (61,360) (67,362) Dividend income (2,416) (1,897) Share of profit of associates accounted for using the equity method (16,335) (31,437) Loss on disposal of property, plant and equipment 11,941 33,578 Write-down of inventories 5,077 51,274 Unrealized gain on foreign currency exchange , net (91,704) (62,255) Others (1,141) 1,031 Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss (5,311) 9,738 Notes receivable 53,528 28,225 Trade receivables 627,320 (386,863) Inventories 85,792 113,234 Other current assets (24,778) (105,378) Contract liabilities (79,832) (11,813) Notes payable 5,129 52 Trade payables (318,039) 454,990 Other payables (266,649) (478,470) Other current liabilities 3,256 1,300 Net defined benefit liabilities 20,541 41,098 Cash generated from operations 3,106,970 3,427,664 Interest received 59,169 73,134 Dividend received 2,416 1,897 Interest paid (151,244) (130,047) Income tax paid (379,542) (773,030) Net cash generated from operating activities 2,637,769 2,599,618 CASH FLOWS FROM INVESTING ACTIVITIES Disposal from sale of financial assets at fair value through other comprehensive income - 11,308 Proceeds from refunds from financial assets at fair value through other comprehensive income capital premium 1,533 2,000 Payments for property, plant and equipment (1,117,068) (2,090,022) Proceeds from disposal of property, plant and equipment 28,554 13,902 (Continued)
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- 8 - HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars) For the Nine Months Ended September 30 2025 2024 Decrease in refundable deposits $ 6,682 $ 7,225 Decrease (increase) in other financial assets 332 (570) Increase in other non-current assets (74,926) (82,437) Increase in prepayments for machinery and equipment (829,372) (550,582) Dividends received from associates - 11,373 Net cash used in investing activities (1,984,265) (2,677,803) CASH FLOWS FROM FINANCING ACTIVITIES Net increase in short-term borrowings 624,922 101,375 Proceeds from long-term borrowings 77,829 359,105 Repayments of long-term borrowings (875,087) (577,149) Repayment of the principal portion of lease liabilities (111,070) (135,287) Decrease in other non-current liabilities (4,779) (34,211) Dividends paid to owners of the Corporation (849,101) (884,481) Acquisition of additional interests in subsidiaries (153) - Net cash used in financing activities (1,137,439) (1,170,648) EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES (40,293) 104,403 NET DECREASE IN CASH AND CASH EQUIVALENTS (524,228) (1,144,430) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 7,353,929 7,564,000 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 6,829,701 $ 6,419,570 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ review report dated November 11, 2025) (Concluded)
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- 9 - HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) 1. GENERAL INFORMATION Hiwin Technologies Corporation (the “Corporation”) was incorporated on October 11, 1989. It manufactures and sells ballscrews, linear guideways, industrial robots, aerospace automation equipment parts, computer numerical control (CNC) milling machines and medical equipment. The Corporation obtained approval from the Securities and Futures Bureau (SFB) of the Financial Supervisory Commission (FSC) to become a public company on April 16, 1997. The shares of the Corporation have been listed on the Taiwan Stock Exchange (TWSE) since June 26, 2009. The consolidated financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar. 2. APPROVAL OF FINANCIAL STATEMENTS The consolidated financial statements were approved by the Corporation’s board of directors on November 11, 2025. 3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the FSC Amendments to IAS 21 “Lack of Exchangeability” The initial application of the Amendments to IAS 21 “Lack of Exchangeability” did not have a material impact on the Group’s accounting policies. b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026 New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB Amendments to IAS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” January 1, 2026 Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” January 1, 2026 Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026 IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17) January 1, 2023
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- 10 - Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” 1) The amendments to the application guidance of classification of financial assets The amendments mainly amend the requirements for the classification of financial assets, including: a) If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if, In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature. b) To clarify that a financial asset has non-recourse features if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets. c) To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches. 2) The amendments to the application guidance of derecognition of financial liabilities The amendments mainly stipulate that a financial liability is derecognized on the settlement date. However, when settling a financial liability in cash using an electronic payment system, the Group can choose to derecognize the financial liability before the settlement date if, and only if, the Group has initiated a payment instruction that resulted in: The Group having no practical ability to withdraw, stop or cancel the payment instruction; The Group having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and The settlement risk associated with the electronic payment system being insignificant. An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance on the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight. As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.
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- 11 - c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” To be determined by IASB IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note 2) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19) January 1, 2027 Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates. Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC. IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise: 1) Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories. 2) The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss. 3) Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label. 4) Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items. Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.
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- 12 - 4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION a. Statement of compliance These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements. b. Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets. The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows: 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and 3) Level 3 inputs are unobservable inputs for an asset or liability. c. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Corporation. See Note 11, Tables 7 and 8 for detailed information on subsidiaries (including percentages of ownership and main businesses). d. Other material accounting policies Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.
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- 13 - 1) Carbon fee provision In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC, the carbon fee provision is recognized and measured based on the best estimate of the expenditure required to settle the obligation for the current year, taking into account the proportion of actual emissions to the total estimated annual emissions. 2) Retirement benefits Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events. 3) Income tax expense Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings. 5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Group’s accounting policies, management is required to make judgments, estimations and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. When the Group develops material accounting estimates, the Group considers the possible impact of US reciprocal tariffs. The estimates and underlying assumptions are reviewed on an ongoing basis. Based on the assessment of the Group’s management, the accounting policies, estimates, and assumptions adopted by the Group have not been subject to material accounting judgements, estimates and assumptions uncertainty. 6. CASH AND CASH EQUIVALENTS September 30, December 31, September 30, 2025 2024 2024 Cash on hand $ 1,719 $ 2,804 $ 2,358 Checking accounts and demand deposits 5,030,903 5,147,435 4,214,070 Pledged time deposits 467 799 600 Cash equivalents Time deposits (investments with original maturities of 3 months or less) 1,797,079 2,203,690 2,203,142 6,830,168 7,354,728 6,420,170 Less: Pledged time deposits (classified as other current assets) (467) (799) (600) $ 6,829,701 $ 7,353,929 $ 6,419,570 (Continued)
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- 14 - September 30, December 31, September 30, 2025 2024 2024 Rate of interest per annum (%) Cash in bank 0.00-4.05 0.00-4.30 0.00-1.55 Time deposits (investments with original maturities of 3 months or less) 0.10-3.80 0.45-4.62 0.75-5.19 Pledged time deposits (Note 29) 0.28-1.68 0.05-3.00 0.05-3.00 (Concluded) 7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS The Group’s financial assets and liabilities mandatorily designated as at fair value through profit or loss (FVTPL) are all generated from its derivative financial products of foreign exchange forward contracts. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting are as follows: Currency Maturity Date Notional Amount (In Thousands) September 30, 2025 Sell EUR/NTD 2025.10.14-2025.12.31 EUR5,100/NTD180,033 Sell CNY/NTD 2025.10.17-2025.12.31 CNY180,000/NTD757,295 Sell USD/NTD 2025.10.29-2025.11.28 USD3,400/NTD102,243 December 31, 2024 Sell EUR/NTD 2025.1.22-2025.3.14 EUR3,100/NTD105,595 Sell CNY/NTD 2025.1.21-2025.3.28 CNY170,000/NTD756,798 Sell USD/NTD 2025.1.21-2025.2.27 USD5,500/NTD178,003 September 30, 2024 Sell EUR/NTD 2024.10.7-2024.12.31 EUR 4,100/NTD145,224 Sell CNY/NTD 2024.10.23-2024.11.29 CNY115,000/NTD518,930 Sell USD/NTD 2024.10.28-2024.12.31 USD3,900/NTD124,394 The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.
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- 15 - 8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT September 30, December 31, September 30, 2025 2024 2024 Name of Investee Company Domestic listed ordinary shares Hiwin Mikrosystem Corp. (Hiwin Mikrosystem) $ 1,109,742 $ 1,457,429 $ 945,900 Ever Fortune. AI Co., Ltd. (Ever Fortune) 144,400 144,000 169,600 Domestic unlisted ordinary shares Taichung International Country Club - - - SunEngine Corporation Ltd. (SunEngine) - - - King Kong Iron Work Ltd. - - - $ 1,254,142 $ 1,601,429 $ 1,115,500 These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes. In April and August 2024, the Group sold its partial shares in Taichung International Country Club and Sunengine at a fair value of $4,250 thousand and $7,058 thousand, respectively, and its related unrealized valuation gain (loss) of $2,150 thousand and $(42,195) thousand were transferred from other equity to retained earnings. 9. NOTES RECEIVABLE AND TRADE RECEIVABLES September 30, December 31, September 30, 2025 2024 2024 Notes receivable At amortized cost Gross carrying amount $ 501,076 $ 570,556 $ 566,586 Less: Allowance for impairment loss (38) (49) (28) $ 501,038 $ 570,507 $ 566,558 Trade receivables At amortized cost Gross carrying amount $ 3,367,422 $ 3,915,815 $ 3,464,863 Less: Allowance for impairment loss (18,062) (18,929) (11,024) $ 3,349,360 $ 3,896,886 $ 3,453,839
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- 16 - a. Notes receivable The Group’s aging of notes receivable was as follows: September 30, December 31, September 30, 2025 2024 2024 Not past due $ 501,076 $ 570,556 $ 566,586 Past due - - - $ 501,076 $ 570,556 $ 566,586 The above aging schedule was based on the past due days. b. Trade receivables The Group determines the credit period of sales of goods based on the counterparty’s credit rating, location and transaction terms. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced. The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlooks. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base. The Group writes off a trade receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss. The following table details the loss allowance of trade receivables: Not Past Due 1 to 120 Days 121 to 360 Days Over 360 Days Total September 30, 2025 Gross carrying amount $ 3,219,339 $ 124,572 $ 9,351 $ 14,160 $ 3,367,422 Loss allowance (Lifetime ECLs) (172) (3,218) (512) (14,160) (18,062) Amortized cost $ 3,219,167 $ 121,354 $ 8,839 $ - $ 3,349,360 December 31, 2024 Gross carrying amount $ 3,762,956 $ 135,633 $ 8,646 $ 8,580 $ 3,915,815 Loss allowance (Lifetime ECLs) (1,788) (3,595) (4,966) (8,580) (18,929) Amortized cost $ 3,761,168 $ 132,038 $ 3,680 $ - $ 3,896,886
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- 17 - Not Past Due 1 to 120 Days 121 to 360 Days Over 360 Days Total September 30, 2024 Gross carrying amount $ 3,360,611 $ 91,933 $ 6,664 $ 5,655 $ 3,464,863 Loss allowance (Lifetime ECLs) 428 (2,474) (3,323) (5,655) (11,024) Amortized cost $ 3,361,039 $ 89,459 $ 3,341 $ - $ 3,453,839 The movements of the loss allowance were as follows (other receivables are classified as other non-current assets): For the Nine Months Ended September 30, 2025 Notes Receivable Trade Receivables Other Receivables Balance on January 1, 2025 $ 49 $ 18,929 $ 27,395 Amounts recovered - 2,198 - Net remeasurement of loss allowance (11) 1,757 - Amounts written off - (5,580) - Foreign exchange gains and losses - 758 - Balance on September 30, 2025 $ 38 $ 18,062 $ 27,395 For the Nine Months Ended September 30, 2024 Notes Receivable Trade Receivables Other Receivables Balance on January 1, 2024 $ 22 $ 9,629 $ 27,395 Net remeasurement of loss allowance 6 1,074 - Amounts written off - (10) - Foreign exchange gains and losses - 331 - Balance on September 30, 2024 $ 28 $ 11,024 $ 27,395 10. INVENTORIES September 30, December 31, September 30, 2025 2024 2024 Merchandise $ 672 $ 1,209 $ 910 Finished goods 3,252,593 3,275,288 3,394,837 Work in process 1,600,027 1,523,281 1,619,492 Raw materials and supplies 2,403,235 2,233,634 2,307,000 Inventory in transit 279,506 373,923 350,124 $ 7,536,033 $ 7,407,335 $ 7,672,363 The cost of inventories recognized as cost of goods sold for the three months ended September 30, 2025 and 2024 was $4,280,579 thousand, $4,382,424 thousand, respectively, and the cost of inventories recognized as cost of goods sold for the nine months ended September 30, 2025 and 2024 was $12,540,620 thousand and $12,534,443 thousand, respectively.
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- 18 - The cost of inventories recognized as cost of goods sold for the three months ended September 30, 2025 and 2024 included inventory write-downs (reversal of inventory write-downs) of $(7,561) thousand and $(28,428) thousand, and unallocated fixed overhead of $83,414 thousand and $88,122 thousand, respectively, and the cost of inventories recognized as cost of goods sold for the nine months ended September 30, 2025 and 2024 included inventory write-downs of $5,077 thousand and $51,274 thousand, and unallocated fixed overhead of $258,040 thousand and $254,850 thousand, respectively. 11. SUBSIDIARIES a. Subsidiaries included in the consolidated financial statements Entities included in the Group’s consolidated financial statements were as follows: % of Ownership Investor Investee Main Business September 30, 2025 December 31, 2024 September 30, 2024 The Corporation Hiwin Corporation, U.S.A. (“Hiwin USA”) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 100 Hiwin Corporation, Japan (“Hiwin Japan”) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 100 Hiwin GmbH (“Hiwin Germany”) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 100 Eterbright Solar Corporation (“Eterbright”) Research, development, design, manufacture and sale of solar cell, electronic components, electric power supply, electric transmission and power distribution machinery products 89 89 89 Hiwin Singapore Pte. Ltd. (“Hiwin Singapore”) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 100 Hiwin Corporation (“Hiwin Korea”) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 100 Hiwin Technologies (China) Corporation (“Hiwin China”) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 100 Matrix Precision Co., Ltd. (“Matrix Precision”) (Note 25) Research, development, production, manufacture and sale of gear cutting tools and machinery 61 61 59 Hiwin Healthcare Corp. Sale of medical robots 100 100 100 Hiwin S.R.L. (“Hiwin Italy”) Sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 100 Matrix Machine Tool (Coventry) Limited (“Matrix England”) Design, integrated application, research, development, manufacture and sale of thread forming machinery 100 100 100 Hiwin (Schweiz) GmbH (“Hiwin Schweiz”) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 81 81 81 Hiwin Germany Hiwin Schweiz Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 19 19 19 Hiwin S.R.O. (“Hiwin Czech”) (Note 24) Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 Note Hiwin SAS (“Hiwin France”) Sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 100 - Matrix Precision Suzhou Matrix Precision Machinery Co., Ltd. (“Suzhou Matrix”) Sale of gear cutting tools and machinery 100 100 100 (Continued)
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- 19 - % of Ownership Investor Investee Main Business September 30, 2025 December 31, 2024 September 30, 2024 Hiwin Czech Hiwin Bulgaria Eood (“Hiwin Bulgaria”) Sale of aerospace parts, ballscrews, linear guideways and industrial robots - 100 Note Hiwin Schweiz Hiwin Bulgaria Eood (“Hiwin Bulgaria”) Sale of aerospace parts, ballscrews, linear guideways and industrial robots 100 - - (Concluded) Note: As of September 30, 2024, Hiwin Germany held 32% equity interest in Hiwin Czech, classified as investments accounted for using the equity method. In November 2024, Hiwin Germany acquired a 68% interest in Hiwin Czech for $256,050 thousand. Combined with its existing 32% equity, Hiwin Germany now holds 100% equity interest in Hiwin Czech. Consequently, Hiwin Czech became a sub-subsidiary and its financial statements are consolidated into those of Hiwin Germany. Hiwin Germany established Hiwin France with and investment amounting to $17,070 thousand in December 2024. Due to management needs, the Group underwent an organizational restructuring. As a result, in January 2025, Hiwin Schweiz acquired 100% equity interest in Hiwin Bulgaria from Hiwin Czech. Except for the financial statements of Hiwin China for the nine months ended September 30, 2025 and 2024, and the financial statements of Hiwin Germany for the nine months ended September 30, 2025, which were reviewed by the independent auditors, the remaining subsidiaries are considered immaterial. (Hiwin Germany has been considered a material subsidiary since 2025) their financial statements have not been reviewed. The resolution to liquidate and dissolve Eterbright was approved during the extraordinary meeting of shareholders on November 27, 2023. The base date for dissolution was set as February 29, 2024 and this approved by the Ministry of Economic Affairs on March 20, 2024. As of September 30, 2025, the liquidation has not yet been completed. b. Details of subsidiaries that have material non-controlling interests Proportion of Ownership and Voting Rights Held by Non-controlling Interests September 30, December 31, September 30, Name of Subsidiary 2025 2024 2024 Eterbright 11% 11% 11% Matrix Precision (Note 25) 39% 39% 41% See Tables 7 and 8 for the information on places of incorporation and principal places of business.
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- 20 - Loss and Comprehensive Loss Allocated to Non-controlling Interests For the Three Months Ended September 30 For the Nine Months Ended September 30 Name of Subsidiary 2025 2024 2025 2024 Eterbright $ 100 $ 121 $ 292 $ (459) Matrix Precision (24,745) (23,287) (82,197) (81,515) $ (24,645) $ (23,166) $ (81,905) $ (81,974) Accumulated Non-controlling Interests Name of Subsidiary September 30, 2025 December 31, 2024 September 30, 2024 Eterbright $ 61,724 $ 61,432 $ 61,312 Matrix Precision 1,451 83,659 46,031 $ 63,175 $ 145,091 $ 107,343 Eterbright September 30, 2025 December 31, 2024 September 30, 2024 Current assets $ 577,691 $ 575,158 $ 573,834 Non-current assets 47,798 47,798 47,798 Current liabilities (50,773) (50,962) (50,760) Non-current liabilities - - - Equity $ 574,716 $ 571,994 $ 570,872 Equity attributable to: Owners of Eterbright $ 512,992 $ 510,562 $ 509,560 Non-controlling interests of Eterbright 61,724 61,432 61,312 $ 574,716 $ 571,994 $ 570,872 For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Revenue $ - $ - $ - $ - Net profit (loss) for the period $ 938 $ 1,127 $ 2722 $ (4,276) Other comprehensive income for the period - - - - Total comprehensive income (loss) for the period $ 938 $ 1,127 $ 2,722 $ (4,276) (Continued)
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- 21 - For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Profit (loss) and total comprehensive income (loss) attributable to: Owners of Eterbright $ 838 $ 1,006 $ 2,430 $ (3,817) Non-controlling interests of Eterbright 100 121 292 (459) $ 938 $ 1,127 $ 2,722 $ (4,276) Net cash inflow (outflow) from: Operating activities $ 2,737 $ (21,792) Investing activities - 4,633 Financing activities - - Net cash inflow (outflow) $ 2,737 $ (17,159) (Concluded) Matrix Precision and Matrix Precision’s subsidiaries September 30, 2025 December 31, 2024 September 30, 2024 Current assets $ 515,985 $ 507,184 $ 557,191 Non-current assets 2,457,432 2,427,904 2,358,845 Current liabilities (1,020,671) (784,483) (1,003,686) Non-current liabilities (1,934,604) (1,920,477) (1,783,632) Equity $ 18,142 $ 230,128 $ 128,718 Equity attributable to: Owners of Matrix Precision $ 11,037 $ 139,964 $ 75,480 Non-controlling interests of Matrix Precision 7,105 90,164 53,238 $ 18,142 $ 230,128 $ 128,718 For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Revenue $ 32,149 $ 80,235 $ 124,235 $ 193,218 Net loss for the period $ (64,161) $ (56,998) $ (211,527) $ (182,590) Other comprehensive income (loss) for the period 293 (125) (458) (276) Total comprehensive loss for the period $ (63,868) $ (57,123) $ (211,985) $ (182,866) (Continued)
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- 22 - For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Loss attributable to: Owners of Matrix Precision $ (39,033) $ (33,423) $ (128,661) $ (101,691) Non-controlling interests of Matrix Precision (25,128) (23,575) (82,866) (80,899) $ (64,161) $ (56,998) $ (211,527) $ (182,590) Total comprehensive loss attributable to: $ (38,855) $ (33,498) $(128,940) $ (101,846) Owners of Matrix Precision (25,013) (23,625) (83,045) (81,020) Non-controlling interests of Matrix Precision $ (63,868) $ (57,123) $ (211,985) $ (182,866) Net cash inflow (outflow) from: Operating activities $ (236,665) $ (502,117) Investing activities (124,845) (476,930) Financing activities 332,950 1,011,560 Net cash inflow (outflow) $ (28,560) $ 32,513 (Concluded) 12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD September 30, December 31, September 30, 2025 2024 2024 Associates that are not individually material $ 351,487 $ 305,995 $ 389,067 For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 The Group’s share of: Profit for the period $ 6,812 $ 9,574 $ 16,335 $ 31,437 Other comprehensive income for the period - - - - Total comprehensive income for the period $ 6,812 $ 9,574 $ 16,335 $ 31,437 Investments were accounted for using the equity method and the share of profit or loss and other comprehensive income (loss) of those investments were calculated based on the financial statements that have not been reviewed. Management believes there is no material impact on the equity method of accounting or the calculation of the share of profit or loss and other comprehensive income (loss) from the financial statements that have not been reviewed.
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- 23 - 13. PROPERTY, PLANT AND EQUIPMENT For the Nine Months Ended September 30, 2025 Beginning Balance (After Retrospective Adjustment) Additions Disposals Reclassified Amount Translation Adjustments Ending Balance Cost Land $ 5,504,601 $ - $ - $ - $ (7,068) $ 5,497,533 Buildings and improvements 18,965,873 77,878 - 2,063,382 (77,712) 21,029,421 Machinery and equipment 13,935,317 230,707 (1,376,017) 565,715 (3,680) 13,352,042 Transportation equipment 265,989 21,154 (24,421) 6,802 7,822 277,346 Leasehold improvements 65,396 - - - (818) 64,578 Miscellaneous equipment 2,525,704 201,318 (62,459) 86,062 (1,526) 2,749,099 Construction in progress 1,812,624 614,005 - (2,054,690) 9,938 381,877 43,075,504 $ 1,145,062 $ (1,462,897 ) $ 667,271 $ (73,044 ) 43,351,896 Accumulated depreciation and impairment Buildings and improvements 3,569,161 $ 368,921 $ - $ - $ (12,034) 3,926,048 Machinery and equipment 8,269,954 1,154,972 (1,345,905) 554 (2,103) 8,077,472 Transportation equipment 156,741 29,850 (21,165) 1,930 4,651 172,007 Leasehold improvements 34,574 5,141 - - (219) 39,496 Miscellaneous equipment 1,595,454 208,890 (55,332) (1,650) (1,386) 1,745,976 13,625,884 $ 1,767,774 $ (1,422,402 ) $ 834 $ (11,091 ) 13,960,999 $ 29,449,620 $ 29,390,897 For the Nine Months Ended September 30, 2024 Beginning Balance Additions Disposals Reclassified Amount Translation Adjustments Ending Balance Cost Land $ 5,470,749 $ - $ - $ - $ 26,180 $ 5,496,929 Buildings and improvements 17,047,036 43,808 - 973,341 164,913 18,229,098 Machinery and equipment 13,900,296 138,726 (516,283) 376,684 51,030 13,950,453 Transportation equipment 282,345 18,776 (28,566) 7,947 7,782 288,284 Leasehold improvements 48,138 42,311 (4,701) - 2,451 88,199 Miscellaneous equipment 2,330,302 161,777 (115,895) 37,612 23,034 2,436,830 Construction in progress 1,311,615 1,773,926 - (1,028,279) 1,961 2,059,223 40,390,481 $ 2,179,324 $ (665,445 ) $ 367,305 $ 277,351 42,549,016 Accumulated depreciation and impairment Buildings and improvements 3,065,611 $ 339,301 $ - $ - $ 36,635 3,441,547 Machinery and equipment 7,433,128 1,170,130 (475,741) (2,006) 26,222 8,151,733 Transportation equipment 163,434 31,074 (26,466) - 4,375 172,417 Leasehold improvements 37,361 2,358 (4,628) - 873 35,964 Miscellaneous equipment 1,476,083 188,845 (111,130) - 15,614 1,569,412 12,175,617 $ 1,731,708 $ (617,965 ) $ (2,006 ) $ 83,719 13,371,073 $ 28,214,864 $ 29,177,943 Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows: Buildings and improvements Main buildings 8-55 years Electrical power equipment 5-15 years Engineering system 5-20 years Machinery and equipment Machinery equipment 3-20 years Inspection equipment 3-20 years
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- 24 - Transportation equipment 2-10 years Leasehold improvements 2-17 years Miscellaneous equipment 2-15 years Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 29. 14. LEASE ARRANGEMENTS a. Right-of-use assets September 30, December 31, September 30, 2025 2024 2024 Carrying amount (Note 29) Land $ 348,335 $ 366,900 $ 378,161 Buildings 271,137 327,861 421,858 Transportation equipment 9,742 13,937 17,375 Miscellaneous equipment 2,806 2,182 1,625 $ 632,020 $ 710,880 $ 819,019 For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Additions to right-of-use assets $ 12,572 $ 13,313 $ 44,805 $ 353,561 Depreciation charge for right-of-use assets Land $ 4,809 $ 4,918 $ 14,509 $ 14,718 Buildings 28,346 40,210 90,621 120,583 Transportation equipment 711 1,000 2,508 2,711 Miscellaneous equipment 162 108 430 293 $ 34,028 $ 46,236 $ 108,068 $ 138,305 Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the nine months ended September 30, 2025 and 2024. b. Lease liabilities September 30, December 31, September 30, 2025 2024 2024 Carrying amount Current $ 98,086 $ 101,258 $ 119,118 Non-current $ 405,284 $ 470,373 $ 558,928
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- 25 - Range of discount rate for lease liabilities was as follows: September 30, December 31, September 30, 2025 2024 2024 Land 1.50%-2.02% 1.50%-1.89% 1.50%-1.89% Buildings 0.90%-5.35% 0.90%-5.35% 0.90%-5.35% Transportation equipment 1.23%-2.38% 1.23%-4.10% 1.23%-4.10% Miscellaneous equipment 1.48%-4.69% 1.48%-4.10% 1.48%-4.10% c. Material leasing activities and terms The Group leases certain transportation and miscellaneous equipment for the use of product manufacturing and marketing with lease terms of 1 to 7 years. These arrangements do not contain renewal or purchase options. The Group also leases land and buildings for the use of plants and offices with lease terms of 1 to 50 years. The lease contract for land located in the Republic of China specifies that lease payments will be adjusted on the basis of changes in the consumer price index or announced land value prices. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. d. Other lease information For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Expenses relating to short-term leases $ 2,444 $ 658 $ 8,025 $ 11,280 Expenses relating to low-value asset leases $ 4,828 $ 4,313 $ 14,247 $ 12,211 Total cash outflow for leases $ (42,993) $ (52,488) $ (133,342) $ (168,223) The Group’s leases of certain equipment qualify as short-term leases and low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases. 15. PREPAYMENTS FOR MACHINERY AND EQUIPMENT The aging of prepayments for machinery and equipment was as follows: The Date of Initial Cost Contribution September 30, 2025 December 31, 2024 September 30, 2024 Within 1 year $ 801,928 $ 658,161 $ 611,834 1-2 years 374,054 168,315 142,674 2-5 years 151,130 264,766 306,339 More than 5 years 106,816 181,353 172,457 $ 1,433,928 $ 1,272,595 $ 1,233,304 In order to maintain key manufacturing technologies, reduce product costs and improve automation of the equipment, the Group designed, developed, and assembled the equipment by itself. The abovementioned prepayments for machinery and equipment include both internally developed and outsourced equipment.
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- 26 - 16. BORROWINGS a. Short-term borrowings September 30, December 31, September 30, 2025 2024 2024 Unsecured borrowings Line of credit borrowings $ 1,998,002 $ 1,397,394 $ 1,611,662 Rate of interest per annum (%) Line of credit borrowings 1.05-5.28 0.79-5.69 0.85-8.25 b. Long-term borrowings September 30, December 31, September 30, 2025 2024 2024 Secured borrowings (Note 29) Secured loans - Expires February 2026 to December 2042 $ 6,354,977 $ 7,096,882 $ 6,091,630 Unsecured borrowings Unsecured loans - Expires April 2027 to July 2030 1,455,131 1,533,214 1,344,474 7,810,108 8,630,096 7,436,104 Less: Current portion (1,177,274) (1,067,434) (606,233) Long-term borrowings $ 6,632,834 $ 7,562,662 $ 6,829,871 Rate of interest per annum (%) Secured loans 1.32-4.12 1.25-4.12 1.25-4.12 Unsecured loans 0.90-4.69 0.90-4.68 0.90-5.33 In August 2019, the Corporation received a qualification letter for the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan from the Ministry of Economic Affairs, and therefore received the subsidy for processing fee of long-term borrowings. As of September 30, 2025, $1,002,000 thousand was drawn down for building the plant, the purchase of machinery and equipment and the use of operating capital. The Corporation recognized $22,632 thousand as a government grant, which is the difference between the loan amount obtained at a lower-than-market interest rate and the fair value, which was accounted for as deferred revenue and would be subsequently recognized in profit or loss over the useful life of the asset.
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- 27 - 17. OTHER PAYABLES September 30, December 31, September 30, 2025 2024 2024 Payables for salaries and bonuses $ 696,059 $ 790,428 $ 659,031 Payables for annual leave 238,968 205,442 202,491 Payables for purchase of equipment 105,627 165,076 172,537 Payables for compensation of employees 91,543 156,559 131,844 Payables for remuneration of directors 40,107 78,467 66,123 Others 448,252 470,078 419,000 $ 1,620,556 $ 1,866,050 $ 1,651,026 18. RETIREMENT BENEFIT PLANS For the three months ended September 30, 2025 and 2024, the pension expenses of defined benefit plans were $6,026 thousand and $4,274 thousand, respectively, and for the nine months ended September 30, 2025 and 2024, the pension expenses of defined benefit plans were $19,610 thousand and $13,586 thousand, respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2024 and 2023, respectively. 19. EQUITY a. Ordinary shares September 30, December 31, September 30, 2025 2024 2024 Number of shares authorized (in thousands) 1,000,000 1,000,000 1,000,000 Shares authorized $ 10,000,000 $ 10,000,000 $ 10,000,000 Number of shares issued and fully paid (in thousands) 353,792 353,792 353,792 Shares issued $ 3,537,923 $ 3,537,923 $ 3,537,923 Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends. b. Capital surplus September 30, December 31, September 30, 2025 2024 2024 May be used to offset a deficit, distributed as cash dividends or transferred to share capital (Note) Issuance of ordinary shares $ 7,469,101 $ 7,469,101 $ 7,469,101 Invalid employee share options 10,634 10,634 10,634 $ 7,479,735 $ 7,479,735 $ 7,479,735
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- 28 - Note: Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year). c. Retained earnings and dividends policy Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, until the accumulated legal reserve equals the Corporation’s paid-in capital, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit shall be distributed as dividends, where the dividends distributed should not exceed 6% of the remaining profit. The Corporation’s profit may be distributed in the form of cash or share dividends; however, the ratio of share dividends distributed shall not exceed two-thirds of the Corporation’s total amount of dividends and bonuses distributed to shareholders. A distribution plan is also to be made by the board of directors and should be resolved in the shareholder’s meeting. The dividends could be distributed in whole or in part by cash after the resolution has been passed by more than half of the directors present at the meeting of the board of directors, in which at least two-thirds of the total number of directors should be present. In addition, a report of such distribution shall be submitted to the shareholders’ meeting. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 21-c. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash. The appropriations of earnings for 2024 and 2023 were as follows: Appropriation of Earnings Dividends Per Share (NT$) For the Year Ended December 31 For the Year Ended December 31 2024 2023 2024 2023 Legal reserve $ 184,515 $ 207,495 Cash dividends 849,101 884,481 $ 2.4 $ 2.5 The appropriations of cash dividends per share for 2024 and 2023 had been approved by the board of directors on February 26, 2025 and February 27, 2024, respectively; the other appropriations of earnings for 2024 and 2023 had been approved by the shareholders in their meetings on May 28, 2025 and May 31, 2024, respectively. 20. REVENUE For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Revenue from contracts with customers Revenue from the sale of goods $ 5,995,331 $ 6,326,487 $17,759,602 $18,015,869
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- 29 - a. Contract balances September 30, December 31, September 30, January 1, 2025 2024 2024 2024 Notes receivable and accounts receivable (Note 9) $ 3,850,398 $ 4,467,393 $ 4,020,397 $ 3,552,752 Contract liabilities - current Sale of goods $ 59,313 $ 139,507 $ 126,748 $ 137,391 b. Disaggregation of revenue For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Linear guideways $ 3,771,867 $ 3,926,561 $ 11,038,062 $ 11,412,262 Ballscrews 1,253,377 1,331,039 3,553,556 3,593,403 Others 970,087 1,068,887 3,167,984 3,010,204 $ 5,995,331 $ 6,326,487 $ 17,759,602 $ 18,015,869 21. NET PROFIT FROM CONTINUING OPERATIONS a. Finance costs For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Interest on bank loans $ 49,619 $ 41,700 $ 142,158 $ 120,998 Interest on lease liabilities 2,514 3,352 8,044 9,445 $ 52,133 $ 45,052 $ 150,202 $ 130,443 Information about capitalized interest is as follows: For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Capitalized interest $ 6,445 $ 12,521 $ 26,472 $ 36,221 Capitalization rates (%) 1.65-2.25 1.40-2.33 1.38-2.25 1.27-2.33
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- 30 - b. Employee benefits expense, depreciation and amortization expenses Operating Costs Operating Expenses Non-business – Other Expenses Total For the Three Months Ended September 30, 2025 Short-term employee benefits $ 924,179 $ 719,821 $ - $1,644,000 Post-employment benefits Defined contribution plans 30,468 25,570 - 56,038 Defined benefit plans (Note 18) 2,317 3,709 - 6,026 Other employee benefits 39,320 36,150 - 75,470 Depreciation expense 467,608 99,668 70 567,346 Amortization expense 2,406 11,708 - 14,114 For the Three Months Ended September 30, 2024 Short-term employee benefits 971,027 725,159 - 1,696,186 Post-employment benefits Defined contribution plans 30,406 15,072 - 45,478 Defined benefit plans (Note 18) 1,580 2,694 - 4,274 Other employee benefits 42,923 23,169 - 66,092 Depreciation expense 475,059 96,745 62 571,866 Amortization expense 1,737 14,894 - 16,631 For the Nine Months Ended September 30, 2025 Short-term employee benefits 2,767,082 2,174,106 - 4,941,188 Post-employment benefits Defined contribution plans 93,326 67,456 - 160,782 Defined benefit plans (Note 18) 7,282 12,328 - 19,610 Other employee benefits 119,881 85,753 - 205,634 Depreciation expense 1,412,840 297,939 226 1,711,005 Amortization expense 6,719 33,972 - 40,691 For the Nine Months Ended September 30, 2024 Short-term employee benefits 2,787,671 2,125,741 - 4,913,412 Post-employment benefits Defined contribution plans 90,393 54,834 - 145,227 Defined benefit plans (Note 18) 4,914 8,672 - 13,586 Other employee benefits 117,042 61,902 - 178,944 Depreciation expense 1,404,908 292,556 176 1,697,640 Amortization expense 4,166 42,423 - 46,589
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- 31 - c. Compensation of employees and remuneration of directors In accordance with the Corporation’s Articles of Incorporation, the Corporation is required to accrue employees compensation and directors' remuneration at rates of no less than 1% and no more than 4%, respectively, of net profit before income tax, employees compensation and directors' remuneration. Pursuant to the amendments to the Securities and Exchange Act in August 2024, revisions to the Articles had been approved in the 2025 shareholders' meeting. The Articles' revisions estipulate that no less than 1% of net profit before income tax, employees compensation and directors' remuneration shall be allocated, of which no less than 0.3% of the employees compensation is to be distributed to non-executive employees. For the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, the compensation of employees (including non-executive employees) and the remuneration of directors were as follows: For the Nine Months Ended September 30 Accrual rate 2025 2024 Compensation of employees 6.1% 6.2% Remuneration of directors 3.1% 3.1% For the Three Months Ended September 30 For the Nine Months Ended September 30 Amount 2025 2024 2025 2024 Compensation of employees $ 34,820 $ 54,498 $ 79,829 $ 131,844 Remuneration of directors $ 17,410 $ 27,249 $ 39,915 $ 65,922 If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences will be are recorded as a change in the accounting estimate. The appropriations of compensation of employees and remuneration of directors for 2024 and 2023 which have been resolved by the board of directors on February 26, 2025 and February 27, 2024, respectively, were as follows: For the Year Ended December 31 2024 2023 Cash Accrual Rate Amount Accrual Rate Amount Compensation of employees 6.2% $ 156,559 5.7% $ 161,498 Remuneration of directors 3.1% 78,279 2.8% 80,749 There was no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023. Information on the compensation of employees and remuneration of directors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.
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- 32 - 22. INCOME TAXES a. Major components of income tax expense recognized in profit or loss For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Current tax In respect of the current period $ 159,180 $ 208,694 $ 270,182 $ 389,582 Income tax of unappropriated earnings (5,483) (14,730) 23,709 34,419 Adjustments for prior periods (52,586) (34,392) (113,925) (41,810) Deferred tax In respect of the current period 50,855 (10,878) 79,449 22,758 Income tax expense recognized in profit or loss $ 151,966 $ 148,694 $ 259,415 $ 404,949 b. Income tax expense in other comprehensive income For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Deferred tax In respect of the current period Translation of foreign operations $ 67,516 $ 23,747 $ 1,606 $ 64,414 c. Income tax assessments The tax returns of the Corporation, Eterbright and Matrix Precision through 2022, 2023 and 2023 have been assessed by the tax authorities, respectively.
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- 33 - 23. EARNINGS PER SHARE Net Profit Attributable to Number of Earnings Owners of the Shares Per Share Corporation (In Thousands) (NT$) For the Three Months Ended September 30, 2025 Basic earnings per share Profit for the period attributable to owners of the Corporation $ 445,852 353,792 $1.26 Effect of potentially dilutive ordinary shares: Compensation of employees - 371 Diluted earnings per share Profit for the period attributable to owners of the Corporation plus effect of potentially dilutive ordinary shares $ 445,852 354,163 $1.26 For the Three Months Ended September 30, 2024 Basic earnings per share Profit for the period attributable to owners of the Corporation $ 664,489 353,792 $1.88 Effect of potentially dilutive ordinary shares: Compensation of employees - 616 Diluted earnings per share Profit for the period attributable to owners of the Corporation plus effect of potentially dilutive ordinary shares $ 664,489 354,408 $1.87 For the Nine Months Ended September 30, 2025 Basic earnings per share Profit for the period attributable to owners of the Corporation $ 1,063,886 353,792 $3.01 Effect of potentially dilutive ordinary shares: Compensation of employees - 463 Diluted earnings per share Profit for the period attributable to owners of the Corporation plus effect of potentially dilutive ordinary shares $ 1,063,886 354,255 $3.00 For the Nine Months Ended September 30, 2024 Basic earnings per share Profit for the period attributable to owners of the Corporation $ 1,641,825 353,792 $4.64 Effect of potentially dilutive ordinary shares: Compensation of employees - 749 Diluted earnings per share Profit for the period attributable to owners of the Corporation plus effect of potentially dilutive ordinary shares $ 1,641,825 354,541 $4.63
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- 34 - The Group may settle compensation paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year. 24. BUSINESS COMBINATIONS a. Subsidiaries acquired Subsidiary Principal Activity Date of Acquisition Proportion of Voting Equity Interests Acquired (%) Consideration Transferred (Cash) Hiwin Czech Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots November 27, 2024 68 $ 256,050 The Group acquired the equity of Hiwin Czech in order to expand the development in the field of drive control, enhance its competitive advantage and increase the scale of operations. b. Assets acquired and liabilities assumed at the date of acquisition Current assets Cash $ 115,357 Trade receivables 69,084 Inventories 88,000 Other current assets 6,556 Non-current assets Property, plant and equipment 128,532 Other non-current assets 374 Current liabilities Trade payables and other payables (32,747) Other current liabilities (17,489) Non-current liabilities Deferred tax liabilities (17,339) $ 340,328 c. Goodwill recognized on acquisitions Consideration transferred $ 256,050 Plus: The originally interests held by the Group at fair value on the date of acquisition 119,490 Less: Fair value of identifiable net assets acquired (340,328) Goodwill recognized on acquisitions $ 35,212
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- 35 - Before the acquisition date, the carrying amount of equity of Hiwin Czech held by the Group was $87,267 thousand. The equity originally held by the Group is then re-evaluated, with its fair value being $119,490 thousand on the acquisition date, the Group recognized gain on disposal of investments amounted to $32,223 thousand. d. Net cash outflow on the acquisition of subsidiaries Considerations paid in cash $ 256,050 Less: Cash balances acquired (115,357) $ 140,693 e. As of September 30, 2025, the Group completed the identification of the difference between the cost of the investment and the Group’s share of the net fair value of the identifiable assets and liabilities of Hiwin Czech, and retrospectively adjusted the consolidated financial statements accordingly. The adjustments to the consolidated balance sheet as of December 31, 2024 were as follows: After Retrospective Adjustment Before Retrospective Adjustment Consolidated balance sheets December 31, 2024 Property, plant and equipment $ 29,449,620 $ 29,367,053 Goodwill $ 291,375 $ 356,603 Deferred tax liabilities $ 822,748 $ 805,409 25. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS In July 2025, the Corporation acquired an additional equity interest of Matrix Precision, thereby increasing its continuing interest from 60.82% to 60.84%, and recognized a decrease of NT$142 thousand in retained earnings. On March 31 and December 31, 2024, the Corporation subscribed for additional new shares of Matrix Precision at a percentage different from its existing ownership percentage, thereby increasing its continuing interest from 50% to 61%, and recognized a decrease of $95,725 thousand in retained earnings. The above transactions were accounted for as equity transactions, since the Corporation did not cease to have control over the subsidiary. 26. CAPITAL MANAGEMENT To support the needs for expansion and upgrade of its plant and equipment, the Group has to maintain an appropriate amount of capital. Therefore, the Group manages its capital to ensure it has the necessary financial resources and operating plan to support the required operating funds, capital expenditures, research and development fees, debt repayment and dividend payments in the next 12 months to achieve an overall balanced capital structure.
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- 36 - Key management personnel of the Group review the capital structure periodically. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders and the amount of new debt issued or existing debt redeemed. 27. FINANCIAL INSTRUMENTS a. Fair value of financial instruments measured at fair value on a recurring basis 1) Fair value hierarchy The Group’s financial assets and liabilities at FVTPL are measured at fair value using Level 2 inputs, and the financial assets at FVTOCI are measured at fair value using Level 1 inputs and Level 3 inputs. 2) Valuation techniques and inputs applied for Level 2 fair value measurement Financial Instruments Valuation Techniques and Inputs Derivatives - foreign currency forward contracts Discounted cash flow. Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. b. Categories of financial instruments September 30, 2025 December 31, 2024 September 30, 2024 Financial assets FVTPL Mandatorily classified as at FVTPL $ 221 $ 112 $ 3,442 Financial assets at amortized cost (1) 11,125,484 12,227,990 10,795,762 Financial assets at FVTOCI Equity instruments 1,254,142 1,601,429 1,115,500 Financial liabilities FVTPL Mandatorily classified as at FVTPL 16,952 5,423 1,387 Financial liabilities at amortized cost (2) 13,353,776 13,983,618 13,027,714 1) The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable (including from related parties), trade receivables (including from related parties), other receivable and refundable deposits. 2) The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, notes payable, trade payables (including from related parties), other payables, long-term borrowings (including those due within one year) and refundable deposits.
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- 37 - c. Financial risk management objectives and policies The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, lease liabilities and borrowings. The Group’s corporate treasury function provides services to the business, monitors and manages the financial risks relating to the operations of the Group. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk. The plans for material treasury activities are reviewed by the audit committee and the board of directors in accordance with procedures required by relevant regulations and internal controls. 1) Market risk The Group entered into some derivative financial instruments, mainly forward foreign exchange contracts, to manage its exposure to foreign currency risk arising on translation of sales and receivables from the export of precision component to USA, Germany, Japan and China. There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured. a) Foreign currency risk The Group’s operating activities and net investment in foreign operations are denominated in foreign currencies. Consequently, the Group is exposed to foreign currency risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Group utilizes foreign exchange forward contracts to hedge its currency exposure. These instruments help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements. Since the Group’s net investments in foreign operations are held for strategic purposes, they are not hedged. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities and derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 31. Sensitivity analysis The Group was mainly exposed to the USD, EUR, JPY and RMB. The sensitivity analysis of foreign currency risk used when reporting foreign currency risk internally to key management personnel mainly focuses on foreign currency denominated monetary items at the end of the reporting period. When the functional currency had increased by 1% against the relevant foreign currency, the post-tax profit for the nine months ended September 30, 2025 and 2024 would have decreased by $36,707 thousand and $38,317 thousand, respectively. b) Interest rate risk The Group is exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates.
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- 38 - The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Fair value interest rate risk Deposits in bank $ 1,797,546 $ 2,204,489 $ 2,203,742 Lease liabilities 503,370 571,631 678,046 Short-term borrowings 556,840 492,134 497,080 Long-term borrowings 313,556 391,206 150,254 Cash flow interest rate risk Deposits in bank 4,896,136 5,034,394 4,090,049 Short-term borrowings 1,441,162 905,260 1,114,582 Long-term borrowings 7,496,552 8,238,890 7,285,850 Sensitivity analysis For floating rate assets and liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been 1% higher and all other variables were held constant, the Group’s post-tax profit for the nine months ended September 30, 2025 and 2024 would have decreased by $24,249 thousand and $25,862 thousand, respectively. 2) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. At the end of the reporting period, the counterparties are all creditworthy organizations; thus, no significant credit risk is expected. The counterparties of the Group’s trade receivables cover a large number of customers, spread across diverse industries. Ongoing credit evaluation is performed on the financial condition of the counterparties of trade receivables. The Group’s concentration of credit risk by geographical locations was mainly in Asia, which accounted for 66%, 73% and 69% of the total trade receivables as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively. 3) Liquidity risk The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants. The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 2025, December 31, 2024 and September 30, 2024, the Group had available unutilized bank loan facilities of $14,384,744 thousand, $14,177,844 thousand and $14,758,669 thousand, respectively.
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- 39 - The following table details the Group’s remaining contractual obligations for its financial liabilities with agreed repayment periods. The tables below had been drawn up based on the undiscounted contractual maturities of the financial liabilities. Less Than 1 Year 1-5 Years 5+ Years September 30, 2025 Non-derivative financial liabilities Non-interest bearing $ 4,609,108 $ - $ - Lease liabilities 105,124 267,422 166,796 Fixed interest rate liabilities 689,241 207,601 - Variable interest rate liabilities 2,649,503 3,211,007 3,833,137 $ 8,052,976 $ 3,686,030 $ 3,999,933 Derivative financial liabilities Foreign exchange forward contracts $ 16,952 $ - $ - December 31, 2024 Non-derivative financial liabilities Non-interest bearing $ 5,183,675 $ - $ - Lease liabilities 105,438 316,552 184,922 Fixed interest rate liabilities 629,633 292,391 - Variable interest rate liabilities 2,031,264 3,653,818 4,335,423 $ 7,950,010 $ 4,262,761 $ 4,520,345 Derivative financial liabilities Foreign exchange forward contracts $ 5,423 $ - $ - September 30, 2024 Non-derivative financial liabilities Non-interest bearing $ 5,036,127 $ - $ - Lease liabilities 123,225 395,681 196,988 Fixed interest rate liabilities 564,115 99,493 - Variable interest rate liabilities 1,828,619 3,613,320 3,612,360 $ 7,552,086 $ 4,108,494 $ 3,809,348 Derivative financial liabilities Foreign exchange forward contracts $ 1,387 $ - $ -
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- 40 - Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years September 30, 2025 Lease liabilities $ 105,124 $ 267,422 $ 107,401 $ 44,760 $ 14,635 Fixed interest rate liabilities 689,241 207,601 - - - Variable interest rate liabilities 2,649,503 3,211,007 3,027,294 602,041 203,802 $ 3,443,868 $ 3,686,030 $ 3,134,695 $ 646,801 $ 218,437 December 31, 2024 Lease liabilities $ 105,438 $ 316,552 $ 113,765 $ 51,644 $ 19,513 Fixed interest rate liabilities 629,633 292,391 - - - Variable interest rate liabilities 2,031,264 3,653,818 3,407,068 656,335 272,020 $ 2,766,335 $ 4,262,761 $ 3,520,833 $ 707,979 $ 291,533 September 30, 2024 Lease liabilities $ 123,225 $ 395,681 $ 119,653 $ 55,344 $ 21,991 Fixed interest rate liabilities 564,115 99,493 - - - Variable interest rate liabilities 1,828,619 3,613,320 2,813,388 589,225 209,747 $ 2,515,959 $ 4,108,494 $ 2,933,041 $ 644,569 $ 231,738 28. TRANSACTIONS WITH RELATED PARTIES Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Details of significant transactions between the Group and other related parties are disclosed below. a. Related party name and categories Related Party Relationship with the Group Hiwin Czech Associate (became sub-subsidiary on November 27, 2024) Mega-Fabs Motion Systems Ltd. (Mega-Fabs) Associate Hiwin Mikrosystem Other related party Hiwin Investment and Holding Corporation (Hiwin Investment Corporation) Other related party Yong-Yin Investment and Holding Corp. (Yong-Yin Investment Corporation) Other related party Hiwin Technologies Foundation in Education (Hiwin Education Foundation) Other related party All Horng Gear Industry Co., Ltd. Other related party Chuo, Yung-Tsai Key management personnel Chuo, Wen-Hen Key management personnel
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- 41 - b. Operating transactions For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 1) Sales of goods Other related parties $ 21,708 $ 23,917 $ 77,211 $ 51,825 Associates - 48,979 - 146,744 $ 21,708 $ 72,896 $ 77,211 $ 198,569 Due to the differences in product specifications, the selling prices of goods sold to related parties and those sold to third parties are not comparable. The selling price is quoted at cost plus a reasonable margin based on the market and competitor pricing. For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 2) Purchases of goods Other related parties $ 135,158 $ 135,865 $ 401,684 $ 419,397 Associates - 289 - 412 $ 135,158 $ 136,154 $ 401,684 $ 419,809 The products purchased from related parties and those from third parties are not the same; therefore, their prices are not comparable. 3) Other operating transactions For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Non-operating income - other income Other related parties $ 2,216 $ 2,285 $ 3,120 $ 4,606 Non-operating expenses - other expenses Hiwin Mikrosystem $ - $ 1,233 $ - $ 3,671 Manufacturing and operating expenses Other related parties $ 5,750 $ 11,104 $ 22,577 $ 30,040 Operating expenses - donations Hiwin Education Foundation $ 4,500 $ - $ 9,000 $ 3,000
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- 42 - September 30, 2025 December 31, 2024 September 30, 2024 4) Notes receivable Other related parties $ 1,093 $ 1,091 $ 470 5) Trade receivables Other related parties $ 556 $ 810 $ 455 Associates - - 20,039 $ 556 $ 810 $ 20,494 6) Other receivables (classified as other current assets) Other related parties $ 193 $ 577 $ 626 7) Notes payable Other related parties $ 132,680 $ 135,550 $ 120,991 8) Other payables Other related parties $ 1,314 $ 6,445 $ 2,830 Key management personnel 1,626 1,610 1,475 $ 2,940 $ 8,055 $ 4,305 9) Refundable deposits Other related parties $ 1,616 $ 1,616 $ 1,616 c. Acquisition of property, plant and equipment Purchase Price For the Nine Months Ended September 30 2025 2024 Other related parties $ 3,600 $ 8,286 d. Lease arrangements Lease arrangements represented the lease prices of factory. The lease prices were determined in accordance with mutual agreements and were based on the market price of the nearby factories and the lease area. The rental expenses were paid monthly.
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- 43 - For the Nine Months Ended September 30 2025 2024 Acquisition of right-of-use assets Other related parties $ 20,828 $ 25,895 September 30, 2025 December 31, 2024 September 30, 2024 Lease liabilities Other related parties $ 20,663 $ 13,926 $ 18,849 For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Finance costs Other related parties $ 106 $ 93 $ 346 $ 342 e. Endorsements and guarantees Related Party Category September 30, 2025 December 31, 2024 September 30, 2024 Key management personnel Amount endorsed $ 2,136,423 $ 2,475,517 $ 2,449,740 Actual utilized (classified as borrowings) $ 1,926,787 $ 1,872,545 $ 1,721,962 Other related parties Amount endorsed $ - $ - $ 489,000 Amount utilized (classified as long-term borrowings) $ - $ 489,000 $ - Note: The other related parties had been terminated their endorsement and guarantee relationship with Matrix Precision on December 20, 2024, and returned the guarantee promissory note amounted to $489,000 thousand. f. Remuneration of key management personnel For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Short-term employee benefits $ 40,892 $ 62,236 $ 139,417 $ 165,439 Post-employment benefits 318 264 867 1,711 $ 41,210 $ 62,500 $ 140,284 $ 167,150 The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.
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- 44 - 29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY The following assets had been pledged or mortgaged as collateral for long-term bank loans and deposits for cooperation in the establishment of education: September 30, 2025 December 31, 2024 September 30, 2024 Property, plant and equipment $ 20,250,514 $ 17,754,132 $ 17,003,635 Right-of-use assets 136,496 145,775 148,137 Pledged deposits (classified as other current assets) 467 799 600 $ 20,387,477 $ 17,900,706 $ 17,152,372 30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS a. As of September 30, 2025, December 31, 2024 and September 30, 2024, unused letters of credit for purchases of raw materials and machinery equipment amounted to $383,214 thousand, $388,844 thousand and $447,372 thousand, respectively. b. As of September 30, 2025, December 31, 2024 and September 30, 2024, commitments for acquisition of property, plant and equipment amounted to $1,134,284 thousand, $1,448,767 thousand and $1,064,385 thousand, respectively. 31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies are as follows: September 30, 2025 December 31, 2024 Foreign Currencies Exchange Rate Carrying Amount Foreign Currencies Exchange Rate Carrying Amount Financial assets Monetary items USD $ 33,136 30.445 $ 1,008,835 $ 33,047 32.785 $ 1,083,456 EUR 35,382 35.77 1,265,602 34,709 34.14 1,184,966 JPY 1,959,035 0.2058 403,169 2,770,724 0.2099 581,575 RMB 602,451 4.271 2,573,070 754,522 4.478 3,378,751 Non-monetary items ILS 33,538 9.501 318,658 31,819 8.585 273,166 Financial liabilities Monetary items USD 16,525 30.445 503,113 13,174 32.785 431,894 EUR 1,599 35.77 57,212 2,959 34.14 101,034 JPY 404,922 0.2058 83,333 1,046,171 0.2099 219,591 RMB 4,364 4.271 18,639 2,644 4.478 11,838
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- 45 - September 30, 2024 Foreign Currencies Exchange Rate Carrying Amount Financial assets Monetary items USD $ 33,261 31.650 $ 1,052,724 EUR 32,041 35.38 1,133,597 JPY 2,438,785 0.2223 542,142 RMB 648,355 4.523 2,932,507 Non-monetary items ILS 31,397 8.447 265,224 Financial liabilities Monetary items USD 14,367 31.650 454,700 EUR 4,762 35.38 168,466 JPY 1,045,278 0.2223 232,365 RMB 3,510 4.523 15,874 The Group is mainly exposed to the USD, EUR, JPY and RMB. The following information was aggregated by the functional currencies of the entities in the Group, and the exchange rates between the respective functional currencies and the presentation currency were disclosed. The significant (realized and unrealized) foreign exchange gain (loss) are as follows: For the Three Months Ended September 30, 2025 For the Three Months Ended September 30, 2024 Foreign Currencies Exchange Rate Net Foreign Exchange Gain Exchange Rate Net Foreign Exchange Gain NTD 1 (NTD:NTD) $235,139 1 (NTD:NTD) $104,493 For the Nine Months Ended September 30, 2025 For the Nine Months Ended September 30, 2024 Foreign Currencies Exchange Rate Net Foreign Exchange Loss Exchange Rate Net Foreign Exchange Gain NTD 1 (NTD:NTD) $(114,760) 1 (NTD:NTD) $261,807 32. SEPARATELY DISCLOSED ITEMS a. Information about significant transactions and b. investees: 1) Financing provided to others. (Table1) 2) Endorsements/guarantees provided. (Table 2) 3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint controlled entities). (Table 3) 4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4) 5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)
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- 46 - 6) Other: intercompany relationships and significant intercompany transactions. (Table 6) 7) Information on investees. (Table 7) c. Information on investments in mainland China 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 8) 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period. (None) b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period. (Tables 4 and 6) c) The amount of property transactions and the amount of the resultant gains or losses. (None) d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes. (None) e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds. (None) f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services. (None) 33. SEGMENT INFORMATION Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Group’s reportable segments are linear guideways, ballscrews and others. The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments. For the Nine Months Ended September 30 Segment Revenue Segment Profit 2025 2024 2025 2024 Linear guideways $ 11,038,062 $ 11,412,262 $ 1,097,053 $ 1,373,107 Ballscrews 3,553,556 3,593,403 345,068 401,382 Others 3,167,984 3,010,204 (114,255) (33,946) Total from continuing operations $ 17,759,602 $ 18,015,869 1,327,866 1,740,543 Subsidized revenue 17,326 14,110 Finance costs (150,202) (130,443) Share of profit of associates accounted for using the equity method 16,335 31,437 (Continued)
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- 47 - For the Nine Months Ended September 30 Segment Revenue Segment Profit 2025 2024 2025 2024 Interest income $ 61,360 $ 67,362 Other income 78,250 73,477 Valuation gain (loss) on financial assets (liabilities) at FVTPL 3,555 (37,854) Other expenses (3,001) (15,191) Loss on disposal of property, plant and equipment (11,941) (33,578) Net foreign exchange gain (loss) (97,972) 255,059 Profit before income tax $ 1,241,576 $ 1,964,922 (Concluded) Segment revenue reported above represents revenue generated from external customers. The intersegment sales are eliminated for the nine months ended September 30, 2025 and 2024. Segment profit represented the profit before tax earned by each segment without subsidized revenue, finance costs, share of profit of associates accounted for using the equity method, interest income, other income, valuation gain (loss) on financial assets (liabilities) at FVTPL, other expenses, loss on disposal of property, plant and equipment, net foreign exchange gain (loss) and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.
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- 48 - TABLE 1 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) No. Lender Borrower Financial Statement Account Related Party Highest Balance for the Period (Note 4) Ending Balance (Note 4) Actual Amount Borrowed Interest Rate Nature of Financing (Note 2) Business Transaction Amount Reasons for Short-term Financing Allowance for Impairment Loss Collateral Financing Limit for Each Borrower (Note 1) Aggregate Financing Limit (Note 3) Item Value 0 The Corporation Hiwin Japan Other receivables from related parties Yes $ 62,816 $ - $ - 2.0654% 1 Sales $566,144 - $ - - $ - $ 5,522,057 $ 11,044,114 Note 1: The total amount for lending to a single company shall not exceed 15% of the net assets of the Corporation based on its latest financial statements. For financing provided by the Corporation due to business dealings, other than the aforementioned restrictions, the amount of financing is also limited to the higher of the total purchase or sales amount between the 2 parties within 1 year from the date of financing or in the most recent year based on the principle that business transactions have already occurred between the two parties. Note 2: The nature of financing is numbered as follows: 1. A company that has business dealings with the lender. 2. A company with short-term financing needs. Note 3: The total amount of the Corporation’s accumulated financing provided should not exceed 30% of the Corporation’s net assets as shown in its latest financial statements. Note 4: The ending balance has been approved by the board of directors.
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- 49 - TABLE 2 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies) No. Endorser/Guarantor Endorsee/Guaranteed Party Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 1) Maximum Amount Endorsed/ Guaranteed During the Year (Note 3) Outstanding Endorsement/ Guarantee at the End of the Year (Notes 3 and 4) Actual Amount Borrowed (Note 4) Amount Endorsed/ Guaranteed by Collaterals Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%) Aggregate Endorsement/ Guarantee Limit (Note 2) Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent Endorsement/ Guarantee Given on Behalf of Companies in Mainland China Name Relationship 0 The Corporation Matrix England Subsidiary $ 3,681,371 $ 43,050 $ 40,970 $ - $ - 0.1% $ 12,884,799 Yes - - (GBP 1,000) (GBP 1,000) 0 The Corporation Hiwin Italy Subsidiary 3,681,371 1,303,171 1,272,937 601,802 - 3.5% 12,884,799 Yes - - (EUR 35,801) (EUR 35,587) (EUR 16,824) 0 The Corporation Hiwin Singapore Subsidiary 3,681,371 199,230 182,670 66,815 - 0.5% 12,884,799 Yes - - (USD 6,000) (USD 6,000) (USD 2,195) 0 The Corporation Hiwin Korea Subsidiary 3,681,371 398,460 365,340 286,183 - 1.0% 12,884,799 Yes - - (USD 12,000) (USD 12,000) (USD 9,400) 0 The Corporation Hiwin Japan Subsidiary 3,681,371 1,546,875 1,397,600 1,315,280 - 3.8% 12,884,799 Yes - - (JPY 6,899,530) (JPY 6,791,060) (JPY 6,391,060) 0 The Corporation Matrix Precision Subsidiary 3,681,371 1,250,000 1,050,000 750,000 - 2.9% 12,884,799 Yes - - Note 1: The limit on the endorsements/guarantees provided for a single enterprise is 10% of the Corporation’s net assets as shown in its most recent financial statements. If approved by the board of directors, the amount of endorsements/guarantees provided by the Corporation for its subsidiaries is not subject to the foregoing limitations; however, it must not exceed 50% of the Corporation's net assets in its most recent financial statements. Note 2: The aggregate endorsement/guarantee limit is 35% of the Corporation’s net assets as shown in its latest financial statements. Note 3: The ending balance has been approved by the board of directors. Note 4: The amounts denominated in foreign currencies were translated into the New Taiwan dollar at the exchange rate prevailing at the end of last month.
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- 50 - TABLE 3 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES SIGNIFICANT MARKETABLE SECURITIES HELD SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) Holding Company Name Type and Name of Marketable Securities Relationship with the Holding Company Financial Statement Account September 30, 2025 NoteNumber of Shares Carrying Amount Percentage of Ownership (%) Fair Value The Corporation Shares Hiwin Mikrosystem Other related party Financial assets at FVTOCI - non-current 9,525,676 $ 1,109,742 8 $ 1,109,742 Ever Fortune. - Financial assets at FVTOCI - non-current 2,000,000 144,400 2 144,400 Note: For information on the investments in subsidiaries and associates, see Tables 7 and 8.
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- 51 - TABLE 4 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) Company Name Related Party Relationship Transaction Details Abnormal Transaction Notes/Trade Receivable (Payable) Note Purchase/Sale Amount (Note) % to Total Payment Terms Unit Price Payment Terms Ending Balance (Note) % to Total The Corporation Hiwin China Subsidiary Sale $ (2,622,622) (21) O/A 90 days $ - - $ 997,480 24 Hiwin Germany Subsidiary Sale (982,206) (8) O/A 90 days - - 404,312 10 Hiwin Italy Subsidiary Sale (466,645) (4) O/A 180 days - - 474,600 11 Hiwin Japan Subsidiary Sale (415,685) (3) O/A 150 days - - 306,433 7 Hiwin USA Subsidiary Sale (282,317) (2) O/A 120 days - - 141,646 3 Hiwin Korea Subsidiary Sale (180,698) (1) O/A 180 days - - 118,181 3 Hiwin Schweiz Subsidiary Sale (139,221) (1) O/A 60 days - - 36,340 1 Hiwin China The Corporation Parent company Purchase 2,622,622 88 O/A 90 days - - (997,480) (94) Hiwin Germany The Corporation Parent company Purchase 982,206 66 O/A 90 days - - (404,312) (75) Hiwin Mikrosystem Other related party Purchase 102,567 7 O/A 90 days - - (29,823) (6) Hiwin Italy The Corporation Parent company Purchase 466,645 89 O/A 180 days - - (474,600) (90) Hiwin Japan The Corporation Parent company Purchase 415,685 76 O/A 150 days - - (306,433) (95) Hiwin USA The Corporation Parent company Purchase 282,317 86 O/A 120 days - - (141,646) (88) Hiwin Korea The Corporation Parent company Purchase 180,698 95 O/A 180 days - - (118,181) (96) Hiwin Schweiz The Corporation Parent company Purchase 139,221 72 O/A 60 days - - (36,340) (58) Note: Except for Hiwin Mikrosystem, significant intercompany accounts and transactions have been eliminated.
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- 52 - TABLE 5 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) Company Name Related Party Relationship Ending Balance (Note) Turnover Rate (Times) Overdue Amounts Received in Subsequent Period Allowance for Impairment LossAmount Actions Taken The Corporation Hiwin China Subsidiary Trade receivables from related parties $ 997,480 3.77 $ - - $ 387,521 $ - Hiwin Germany Subsidiary Trade receivables from related parties 404,312 3.88 - - 179,153 - Hiwin Italy Subsidiary Trade receivables from related parties 474,600 1.44 - - 50,926 - Other receivables from related parties 1,047 - - - 1,047 - Hiwin Japan Subsidiary Trade receivables from related parties 306,433 1.68 - - 41,107 - Other receivables from related parties 1,163 - - - 1,163 - Hiwin USA Subsidiary Trade receivables from related parties 141,646 2.70 - - 77,978 - Hiwin Korea Subsidiary Trade receivables from related parties 118,181 2.28 - - 22,022 - Other receivables from related parties 300 - - - 300 Note: Significant intercompany accounts and transactions have been eliminated.
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- 53 - TABLE 6 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) No. Investee Company Counterparty Relationship (Note 1) Transaction Details Financial Statement Account Amount (Note 2) Payment Terms % to Total Sales or Assets 0 The Corporation Hiwin China 1 Sales $ 2,622,622 O/A 90 days 15 1 Trade receivables 997,480 O/A 90 days 2 Hiwin Germany 1 Sales 982,206 O/A 90 days 6 1 Trade receivables 404,312 O/A 90 days 1 Hiwin Italy 1 Sales 466,645 O/A 180 days 3 1 Trade receivables 474,600 O/A 180 days 1 1 Other receivables 1,047 - - Hiwin Japan 1 Sales 415,685 O/A 150 days 2 1 Trade receivables 306,433 O/A 150 days 1 1 Other receivables 1,163 - - Hiwin USA 1 Sales 282,317 O/A 120 days 2 1 Trade receivables 141,646 O/A 120 days - Hiwin Korea 1 Sales 180,698 O/A 180 days 1 1 Trade receivables 118,181 O/A 180 days - 1 Other receivables 300 - - Hiwin Schweiz 1 Sales 139,221 O/A 60 days 1 1 Trade receivables 36,340 O/A 60 days - Hiwin Singapore 1 Sales 89,908 O/A 120 days 1 1 Trade receivables 38,217 O/A 120 days - Note 1: Relationship of investee company to counterparty: (1) parent company to subsidiary; (2) subsidiary to parent company. Note 2: Significant intercompany accounts and transactions have been eliminated. Note 3: Unrealized gains from Hiwin China totaled $132,857 thousand.
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- 54 - TABLE 7 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies) Investor Company Investee Company Location Main Businesses and Products Original Investment Amount As of September 30, 2025 Net Income (Loss) of the Investee Share of Profit (Loss) NoteSeptember 30, 2025 December 31, 2024 Number of Shares % Carrying Amount The Corporation Hiwin Germany Germany Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots $ 224,257 $ 224,257 - 100 $ 2,743,414 $ 82,607 $ 82,607 Subsidiary Hiwin USA United States of America Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 353,844 353,844 2,148,000 100 1,109,028 46,807 46,807 Subsidiary Hiwin Japan Japan Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 1,281,417 1,104,902 97,140 100 1,239 (110,523) (110,523) Subsidiary Mega-Fabs Israel Research, manufacture and sale of drivers and controllers 42,444 42,444 240,000 40 351,487 40,837 16,335 Investment accounted for using the equity method Eterbright Taiwan Research, development, design, manufacture and sale of solar cell, electronic components, electric power supply, electric transmission and power distribution machinery products 6,322,668 6,322,668 505,360,592 89 512,992 2,722 2,430 Subsidiary Hiwin Singapore Singapore Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 117,550 117,550 5,000,000 100 (9,411) (29,563) (29,563) Subsidiary Hiwin Korea Korea Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots 242,707 242,707 1,760,000 100 (284,717) (51,092) (51,092) Subsidiary Matrix Precision Taiwan Research, development, production, manufacture and sale of gear cutting tools and machinery 1,436,841 1,436,688 75,711,726 61 179,498 (211,527) (127,343) Subsidiary Hiwin Healthcare Corp. Samoa Sale of medical robots 3,108 3,108 100,000 100 2,875 14 14 Subsidiary Hiwin Italy Italy Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots 296,580 296,580 - 100 345,326 46,906 46,906 Subsidiary Matrix England United Kingdom Design integrated application, research, development, manufacture and sale of thread forming machinery 812,334 812,334 8,249,500 100 343,482 (36,508) (31,402) Subsidiary Hiwin Schweiz Switzerland Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots 266,300 266,300 243,000 81 509,179 68,300 68,300 Subsidiary Hiwin Germany Hiwin Czech Czech Republic Sale of aerospace parts, ballscrews, linear guideways, and industrial robots 256,154 (EUR 7,502) 256,154 (EUR 7,502) - 100 415,225 (EUR 11,608) 11,708 (Note 1) Sub-subsidiary Hiwin Schweiz Switzerland Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots 3,320 (EUR 72) 3,320 (EUR 72) 57,000 19 46,031 68,300 - Subsidiary Hiwin France France Sale of aerospace parts, ballscrews, linear guideways, and industrial robots 17,070 (EUR 500) 17,070 (EUR 500) - 100 973 (EUR 27) (18,373) (Note 1) Sub-subsidiary Hiwin Czech Hiwin Bulgaria Bulgaria Sale of aerospace parts, ballscrews, linear guideways, and industrial robots - 3,880 (BGN 222) (Note 4) (Note 4) (Note 4) (Note 4) (Note 4) (Note 4) Hiwin Schweiz Hiwin Bulgaria Bulgaria Sale of aerospace parts, ballscrews, linear guideways, and industrial robots 20,484 (EUR 600) - - 100 32,047 (CHF 838) 1,531 (Note 1) Sub-subsidiary Note 1: Exempted from disclosure in accordance with regulations. Note 2: Except for Mega-Fabs, the remaining investee companies are all consolidated entities and the significant intercompany accounts and transactions have been eliminated. Note 3: For information on investments in mainland China, see Table 8. Note 4: In January 2025, Hiwin Schweiz acquired 100% equity interest of Hiwin Bulgaria from Hiwin Czech.
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- 55 - TABLE 8 HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars and Foreign Currencies) Investee Company Main Businesses and Products Paid-in Capital Method of Investment Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2025 Remittance of Funds Accumulated Outward Remittance for Investments from Taiwan as of September 30, 2025 Net Income (Loss) of the Investee % Ownership of Direct or Indirect Investment Investment Gain (Loss) Carrying Amount as of September 30, 2025 Accumulated Repatriation of Investment Income as of September 30, 2025 Outward Inward Hiwin China Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots $ 1,498,040 (RMB 300,000) (Note 1) $ 1,498,040 (RMB 300,000) $ - $ - $ 1,498,040 (RMB 300,000) $ 102,223 100 $ 102,231 (Notes 2 and 4) $ 2,617,969 (Note 4) $ - Suzhou Matrix Sale of gear cutting tools and machinery 36,192 (RMB 8,000) (Note 1) 36,192 (RMB 8,000) - - 36,192 (RMB 8,000) (8,139) 61 (4,951) (Notes 2 and 4) 3,235 (Note 4) - Investor Company Accumulated Outward Remittance for Investments in Mainland China as of September 30, 2025 Investment Amounts Authorized by the Investment Commission, MOEA Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA The Corporation $ 1,498,040 ( RMB 300,000 ) $ 1,498,040 ( RMB 300,000 ) (Note 3) Matrix Precision $ 36,192 ( RMB 8,000 ) $ 36,192 ( RMB 8,000 ) $ 138,077 (Note 3) Note 1: The investment in mainland China was made directly. Note 2: The investment gain (loss) of Hiwin China is recognized according to the financial statement reviewed by the Corporation’s independent auditors, and the investment gain (loss) of Suzhou Matrix is calculated based on the unreviewed financial statements for the same reporting period. Note 3: Calculated in accordance with the “Regulations on Screening and Approval of Investment and Technical Cooperation in Mainland China” issued by the Investment Commission of the Ministry of Economic Affairs, the Corporation has been certified by the Industrial Development Bureau of the Ministry of Economic Affairs as an enterprise that has conformed to the scope of operations of the headquarters; therefore, there is no investment limit. The upper limit on the amount of investments in Matrix Precision is 60% of the net assets of Matrix Precision. Note 4: Significant intercompany accounts and transactions have been eliminated.