Interim report
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( English Translation of Consolidated Financial Statements Originally Issued in Chinese ) ACER INCORPORATED AND SUBSIDIARIES Consolidated Balance Sheets June 30 , 2026 , December 31 , 2025 , and June 30 , 2025 ( Expressed in Thousands of New Taiwan Dollars ) Assets Current assets : June 30 , 2026 Amount % December 31 , 2025 Amount % June 30 , 2025 Amount % 1100 Cash and cash equivalents $ 31,107,363 10 31,870,146 13 32,424,551 15 1110 Financial assets measured at fair value through profit or loss - current 1,248,186 1 834,425 780,084 1136 Financial assets measured at amortized cost - current 411,718 874,705 639,163 1140 Contract assets - current 1,072,937 798,531 1,045,796 1170 Notes and accounts receivable , net 71,680,922 23 61,000,150 24 57,843,567 26 1180 Accounts receivable from related parties 9,672 14,150 1200 Other receivables 2,767,357 1 1,654,334 1 92,635 1,501,248 1 1220 Current income tax assets 130X Inventories 1476 Other financial assets - current 1479 Other current assets Total current assets 1,214,344 98,348,453 32 8,682,600 3 5,987,787 2 222,531,339 72 1,107,961 61,288,393 24 9,728,763 4 4,406,697 2 173,578,255 68 563,320 41,875,246 11,076,412 5 19 3,838,938 2 151,680,960 68 Non - current assets : 1510 Financial assets measured at fair value 1517 through profit or loss - non - current Financial assets measured at fair value through other comprehensive income- 30,479 30,066 7,203,419 3 non - current 11,504,523 4 10,089,207 4 9,696,477 4 1535 Financial assets measured at amortized cost -non - current 6,614,551 2 6,719,156 3 6,699,004 3 1550 Investments accounted for using the equity method 8,910,427 3 1600 Property , plant and equipment 1755 Right - of - use assets 1760 Investment property 1780 Intangible assets 1840 Deferred income tax assets 4,915,882 14,709,658 5 2,378,839 1 996,119 31,835,113 10 2 - 1980 Other financial assets - non - current 1,802,762 - 6,853,019 3 13,668,009 5 2,138,234 1 996,055 31,654,776 4,824,310 2 1,794,611 1 5,390,379 9,075,347 2,045,668 - 3,860,259 12 1990 Other non - current assets Total non - current assets 2,452,615 86,150,968 1 28 Total assets $ 308,682,307 100 2,267,963 81,035,406 32 254,613,661 100 18,815,238 9 4,502,034 1,672,921 1 2,124,452 241292 71,085,198 32 222,766,158 100 ( Continued )
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ACER INCORPORATED AND SUBSIDIARIES Consolidated Balance Sheets (Continued) June 30, 2026, December 31, 2025, and June 30, 2025 (Expressed in Thousands of New Taiwan Dollars) June 30, 2026 December 31, 2025 June 30, 2025 Liabilities and Equity Amount % Amount % Amount % Current liabilities: 2100 Short-term borrowings $28,831,254 9 5,496,849 2 4,043,790 2 2120 Financial liabilities measured at fair value through profit or loss－current 32,055 - 274,501 - 1,601,616 1 2130 Contract liabilities－current 4,184,931 1 4,149,590 2 3,092,275 1 2170 Notes and accounts payable 60,838,03320 47,192,06218 38,546,58117 2200 Other payables 52,624,97917 35,276,08214 38,798,28817 2230 Current tax liabilities 3,320,596 1 2,870,673 1 2,341,486 1 2250 Provisions－current 6,792,499 2 6,742,701 3 6,088,042 3 2280 Lease liabilities－current 775,642 - 774,253 - 1,164,216 1 2321 Current portion of bonds payable 5,400,000 2 7,500,000 3 7,500,000 3 2322 Current portion of long-term debt 2,135,171 1 22,961 - 222,887 - 2365 Refund liabilities－current 15,998,969 5 14,935,551 6 12,690,929 6 2399 Other current liabilities 1,544,493 1 1,689,824 1 1,552,275 1 Total current liabilities 182,478,62259 126,925,04750 117,642,38553 Non-current liabilities: 2527 Contract liabilities－non-current 1,241,038 - 1,291,939 - 1,226,788 - 2531 Bonds payable 2,100,000 1 5,000,000 2 7,500,000 3 2540 Long-term debt 11,386,666 4 11,759,896 4 9,481,181 4 2550 Provisions－non-current 10,999 - 38,209 - 42,064 - 2570 Deferred income tax liabilities 7,896,282 2 7,882,969 3 6,063,444 3 2580 Lease liabilities－non-current 1,865,572 1 1,621,978 1 3,389,444 2 2600 Other non-current liabilities 1,908,545 1 1,855,876 1 1,816,496 1 Total non-current liabilities 26,409,102 9 29,450,86711 29,519,41713 Total liabilities 208,887,72468 156,375,91461 147,161,80266 Equity : 3110 Common stock 30,478,53810 30,478,53812 30,478,53814 3200 Capital surplus 28,218,084 9 27,963,06011 27,969,40913 3300 Retained earnings 17,448,480 6 18,424,400 7 16,090,246 7 3400 Other equity 3,741,546 1 1,446,925 1 (3,372,355)(2) 3500 Treasury stock (2,712,774)(1) (2,712,774)(1) (2,712,774)(1) Equity attributable to shareholders of the Parent 77,173,87425 75,600,14930 68,453,06431 36XX Non-controlling interests 22,620,709 7 22,637,598 9 7,151,292 3 Total equity 99,794,58332 98,237,74739 75,604,35634 Total liabilities and equity $308,682,307100 254,613,661100 222,766,158100
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ACER INCORPORATED AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the three months ended June 30, 2026 and 2025, and six months ended June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share) For the three months ended June 30 For the six months ended June 30 2026 2025 2026 2025 Amount % Amount % Amount % Amount % 4000 Net revenue $85,303,361100 66,531,628100 157,726,373 100 127,869,621 100 5000 Cost of revenue (75,602,841)(89) (59,802,419)(90) (139,939,963) (89) (114,662,639) (90) Gross profit 9,700,520 11 6,729,209 10 17,786,410 11 13,206,982 10 Operating expenses : 6100 Selling expenses (4,994,681) (6) (3,765,053) (6) (9,700,452) (6) (7,494,321) (6) 6200 General and administrative expenses (2,102,813) (2) (1,688,085) (2) (3,987,692) (2) (3,058,225) (2) 6300 Research and development expenses (836,606) (1) (574,878) (1) (1,545,211) (1) (944,970) (1) Total operating expenses (7,934,100) (9) (6,028,016) (9) (15,233,355) (9) (11,497,516) (9) 6500 Other operating income and expenses, net 16,433 - 32,728 - 32,953 - 63,200 - Operating income 1,782,853 2 733,921 1 2,586,008 2 1,772,666 1 Non-operating income and loss: 7100 Interest income 472,856 - 479,632 1 826,171 1 976,014 1 7010 Other income 6,938 - 239,265 - 6,955 - 251,561 - 7020 Other gains and losses 1,677,761 2 526,008 1 2,360,610 1 82,217 - 7050 Finance costs (364,890) - (217,001) - (631,580) - (392,184) - 7060 Share of profits of associates and joint ventures 314,121 - 37,214 - 505,391 - 66,843 - Total non-operating income and loss 2,106,786 2 1,065,118 2 3,067,547 2 984,451 1 7900 Income before taxes 3,889,639 4 1,799,039 3 5,653,555 4 2,757,117 2 7950 Income tax expense (1,093,547) (1) (483,591) (1) (1,518,425) (1) (737,553) - Net income 2,796,092 3 1,315,448 2 4,135,130 3 2,019,564 2 Other comprehensive income (loss) : 8310 Items that will not be reclassified subsequently to profit or loss 8311 Remeasurements of defined benefit plans (6) - - - (6) - - - 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 2,600,847 3 552,889 1 2,021,839 1 (46,442) - 8320 Share of other comprehensive income (loss) of associates and joint ventures 2,515 - (1,356) - 2,526 - (1,935) - 8349 Income tax related to items that will not be reclassified subsequently to profit or loss - - - - - - - - Total items that will not be reclassified to profit or loss 2,603,356 3 551,533 1 2,024,359 1 (48,377) - 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign operations (644,682) - (6,588,368)(10) 505,774 - (4,976,368) (4) 8370 Share of other comprehensive income (loss) of associates (3,980) - (35,291) - 285 - (30,893) - 8399 Income tax related to items that may be reclassified subsequently to profit or loss - - - - - - - - Total items that may be reclassified subsequently to profit or loss (648,662) - (6,623,659)(10) 506,059 - (5,007,261) (4) Other comprehensive income (loss), net of taxes 1,954,694 3 (6,072,126) (9) 2,530,418 1 (5,055,638) (4) Total comprehensive income (loss) $ 4,750,786 6 (4,756,678) (7) 6,665,548 4 (3,036,074) (2) Net income attributable to: 8610 Shareholders of the Parent $ 2,171,521 2 1,084,763 2 2,873,563 2 1,599,928 1 8620 Non-controlling interests 624,571 1 230,685 - 1,261,567 1 419,636 1 $ 2,796,092 3 1,315,448 2 4,135,130 3 2,019,564 2 Total comprehensive income (loss) attributable to: 8710 Shareholders of the Parent $ 4,173,504 5 (4,786,293) (7) 5,281,709 3 (3,286,179) (2) 8720 Non-controlling interests 577,282 1 29,615 - 1,383,839 1 250,105 - $ 4,750,786 6 (4,756,678) (7) 6,665,548 4 (3,036,074) (2) Earnings per share (in New Taiwan dollars) : 9750 Basic earnings per share $ 0.72 0.36$ 0.96 0.53 9850 Diluted earnings per share $ 0.72 0.36$ 0.95 0.53
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ACER INCORPORATED AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the six months ended June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars) Attributable to shareholders of the Parent Retained earnings Other equity Common stock Capital surplus Legal reserve Special reserve Unappropriated retained earnings Total Foreign currency translation differences Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income Remeasurements of defined benefit plans Total Treasury stock Total equity attributable to shareholders of the parent Non- controlling interests Total equity Balance at January 1, 2025 $ 30,478,538 27,876,265 3,827,889 7,313,941 8,512,003 19,653,833 (819,544) 2,167,196 184,617 1,532,269 (2,712,774) 76,828,131 6,741,591 83,569,722 Net income for the period - - - - 1,599,928 1,599,928 - - - - - 1,599,928 419,636 2,019,564 Other comprehensive income (loss) for the period - - - - - - (4,860,083) (26,024) - (4,886,107) - (4,886,107) (169,531) (5,055,638) Total comprehensive income (loss) for the period - - - - 1,599,928 1,599,928 (4,860,083) (26,024) - (4,886,107) - (3,286,179) 250,105 (3,036,074) Appropriation and distribution of retained earnings: Legal reserve - - 603,941 - (603,941) - - - - - - - - - Special reserve - - - 528,327 (528,327) - - - - - - - - - Cash dividends - - - - (5,181,352) (5,181,352) - - - - - (5,181,352) - (5,181,352) Adjustments of capital surplus for the cash dividends distributed to subsidiaries - 70,799 - - - - - - - - - 70,799 - 70,799 Share of changes in equity of associates - (12,178) - - - - - - - - - (12,178) (5,458) (17,636) Changes in ownership interests in subsidiaries - 7,491 - - - - (873) (6) (60) (939) - 6,552 (6,552) - Acquisition or disposal of interests in subsidiaries - - - - - - - - - - - - 33,258 33,258 Difference between consideration and carrying amount of subsidiaries acquired or disposed - 20,924 - - - - 30 90 139 259 - 21,183 (21,183) - Organizational restructuring under common control - 3 - - - - - - - - - 3 (3) - Stock option compensation cost of subsidiaries - 6,105 - - - - - - - - - 6,105 6,894 12,999 Acquisition of subsidiaries - - - - - - - - - - - - 622,216 622,216 Increase in non-controlling interests - - - - - - - - - - - - 70,396 70,396 Cash dividends paid to non-controlling interests by subsidiaries - - - - - - - - - - - - (539,972) (539,972) Disposal of financial assets measured at fair value through other comprehensive income by the Company - - - - 26,793 26,793 - (26,793) - (26,793) - - - - Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries - - - - (8,956) (8,956) - 8,956 - 8,956 - - - - Balance at June 30, 2025 $ 30,478,538 27,969,409 4,431,830 7,842,268 3,816,148 16,090,246 (5,680,470) 2,123,419 184,696 (3,372,355) (2,712,774) 68,453,064 7,151,292 75,604,356 Balance at January 1, 2026 $ 30,478,538 27,963,060 4,431,830 7,842,268 6,150,302 18,424,400 (1,388,291) 2,754,721 80,495 1,446,925 (2,712,774) 75,600,149 22,637,598 98,237,747 Net income for the period - - - - 2,873,563 2,873,563 - - - - - 2,873,563 1,261,567 4,135,130 Other comprehensive income (loss) for the period - - - - - - 391,387 2,016,730 29 2,408,146 - 2,408,146 122,272 2,530,418 Total comprehensive income (loss) for the period - - - - 2,873,563 2,873,563 391,387 2,016,730 29 2,408,146 - 5,281,709 1,383,839 6,665,548 Appropriation and distribution of retained earnings: Legal reserve - - 395,192 - (395,192) - - - - - - - - - Special reserve - - - 497,471 (497,471) - - - - - - - - - Cash dividends - - - - (3,962,210) (3,962,210) - - - - - (3,962,210) - (3,962,210) Adjustments of capital surplus for the cash dividends distributed to subsidiaries - 54,140 - - - - - - - - - 54,140 - 54,140 Share of changes in equity of associates - 115,524 - - - - - - - - - 115,524 2,651 118,175 Changes in ownership interests in subsidiaries - 47,548 - - - - (711) - 27 (684) - 46,864 (46,864) - Acquisition or disposal of interests in subsidiaries - - - - - - - - - - - - 54,747 54,747 Difference between consideration and carrying amount of subsidiaries acquired or disposed - 23,361 - - - - (110) (198) 194 (114) - 23,247 (23,247) - Organizational restructuring under common control - 5,763 - - - - - - - - - 5,763 (5,763) - Stock option compensation cost of subsidiaries - 10,301 - - - - - - - - - 10,301 21,704 32,005 Acquisition of subsidiaries - - - - - - - - - - - - 960,912 960,912 Increase in non-controlling interests - - - - - - - - - - - - 172,651 172,651 Cash dividends paid to non-controlling interests by subsidiaries - - - - - - - - - - - - (2,535,495) (2,535,495) Disposal of financial assets measured at fair value through other comprehensive income by the Company - - - - 123,496 123,496 - (123,496) - (123,496) - - - - Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries - - - - (10,769) (10,769) - 10,769 - 10,769 - - - - Subsidiary subscribe for treasury stock - (1,613) - - - - - - - - - (1,613) (2,024) (3,637) Balance at June 30, 2026 $ 30,478,538 28,218,084 4,827,022 8,339,739 4,281,719 17,448,480 (997,725) 4,658,526 80,745 3,741,546 (2,712,774) 77,173,874 22,620,709 99,794,583
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ACER INCORPORATED AND SUBSIDIARIES Consolidated Statements of Cash Flows For the six months ended June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars) For the six months ended June 30 2026 2025 Cash flows from operating activities: Income before income tax $ 5,653,555 2,757,117 Adjustments for: Adjustments to reconcile profit or loss: Depreciation 995,425 807,343 Amortization 891,163 624,592 Net (gain) loss on financial assets measured at fair value through profit or loss (895) 1,679 Effects of exchange rate changes on financial assets measured at amortized cost (62,384) 536,690 Interest expense 631,580 392,184 Interest income (826,171) (976,014) Dividend income (6,955) (251,561) Share-based compensation cost 32,005 12,999 Share of profits of associates and joint ventures (505,391) (66,843) Other investment gain - (659,623) Loss on disposal of property, plant and equipment 2,216 5,247 Gain on disposal of investments accounted for using the equity method (65,537) (12,464) Gain on disposal of intangible assets (1,268,000) - Gain on bargain purchase (280,170) - Total adjustments for profit or loss (463,114) 414,229 Changes in operating assets and liabilities: Changes in operating assets: Derivative financial instruments measured at fair value through profit or loss (998,501) 2,493,498 Contract assets (274,406) (272,654) Notes and accounts receivable (10,307,311) (3,089,044) Receivables from related parties 4,479 364,909 Inventories (36,445,044) 4,309,016 Other receivables and other current assets (1,319,451) 407,972 Other non-current assets (161,753) (107,933) Changes in operating assets (49,501,987) 4,105,764 Changes in operating liabilities: Contract liabilities (15,560) (195,313) Notes and accounts payable 13,573,083 147,855 Other payables and other current liabilities 10,734,966 (1,182,207) Provisions 22,126 (524,644) Refund liabilities 1,063,418 (1,373,728) Other non-current liabilities (6,044) 17,731 Changes in operating liabilities 25,371,989 (3,110,306) Cash (used in) provided by operations (18,939,557) 4,166,804 Interest received 801,974 967,030 Income taxes paid (1,419,763) (2,864,213) Net cash flows (used in) provided by operating activities (19,557,346) 2,269,621 (Continued)
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ACER INCORPORATED AND SUBSIDIARIES Consolidated Statements of Cash Flows (Continued) For the six months ended June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars) For the six months ended June 30 2026 2025 Cash flows from investing activities: Acquisition of financial assets measured at fair value through other comprehensive income (43,485) (64,982) Proceeds from disposal of financial assets measured at fair value through other comprehensive income 792 46,085 Acquisition of financial assets measured at amortized cost - (473,092) Proceeds from repayment of principal of financial assets measured at amortized cost 635,400 704,900 Acquisition of financial assets measured at fair value through profit or loss (349,529) (4,072,190) Proceeds from disposal of financial assets measured at fair value through profit or loss 703,877 - Acquisition of investments accounted for using the equity method (882,504) (736,778) Proceeds from disposal of investments accounted for using the equity method 111,913 - Acquisition of property, plant and equipment and investment property (1,015,344) (593,580) Proceeds from disposal of property, plant and equipment 2,586 1,760 Acquisition of intangible assets (72,425) (58,650) Net cash inflow from disposal of subsidiaries (loss of control) - 16,934 Net cash inflow (outflow) from acquisition of subsidiaries 935,094 (586,628) Increase in assets recognized from costs to fulfill contracts with customers (594,188) (473,012) Decrease (increase) in other financial assets 1,066,231 (1,455,640) Dividends received 46,212 158,462 Net cash flows provided by (used in) investing activities 544,630 (7,586,411) Cash flows from financing activities: Increase in short-term borrowings 45,646,760 8,729,789 Decrease in short-term borrowings (22,317,893) (8,429,871) Repayments of bonds (5,000,000) - Increase in long-term debt 1,000,000 4,036,130 Repayment of long-term debt (277,498) (201,095) Payment of lease liabilities (439,763) (543,884) Payment of subsidiaries purchase of treasury stock (3,637) - Cash dividends paid to non-controlling interests by subsidiaries (21,292) - Issuance of common stock by subsidiaries not subscribed by the Group 172,651 89,999 Acquisition of interests in subsidiaries (7,182) (664) Proceeds from disposal of interests in subsidiaries (without losing control) 61,929 33,922 Interest paid (682,700) (435,506) Net cash flows provided by financing activities 18,131,375 3,278,820 Effect of foreign exchange rate changes 118,558 (3,202,454) Net decrease in cash and cash equivalents (762,783) (5,240,424) Cash and cash equivalents at beginning of period 31,870,146 37,664,975 Cash and cash equivalents at end of period $ 31,107,363 32,424,551